EXPO - Earnings call transcript Q1 2021

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Operator

Good day. And welcome to the Exponent First Quarter and Fiscal Year 2021 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Whitney Kukulka. Please go ahead, ma’am.

Whitney Kukulka

Operator. you, Thank and ladies Good gentlemen. afternoon, Thank you of Exponent’s quarter us year joining XXXX on fiscal financial first call. for results conference Please be will Relations company’s this on website that corporate Investor the section simultaneously www.exponent.com/investors. at the of note webcast call the without conference prohibited and any is written consent. of taping This property Exponent other or is reproduction call prior expressly

Financial Schlenker, Catherine Chief Executive and me the Executive President Joining Vice President on call Corrigan, today Officer. and Chief and are Rich Dr. Officer;

to opportunities remind may forward-looking involves like that financial Before the not materially contains we would uncertainties cause start, that discussion you statements, differ to limited from following I that results results and risks to, and those but actual including, discussed Exponent’s market future here.

as results be call this statements from XX-Q. filings, recent actual to developments are new obligation over The Catherine caption periodic whether under Executive SEC most statements of based Additional result differ the on found current will in those now, Exponent’s Factor and as a turn Catherine? revise Corrigan, of information can today update conference factors discussed I Dr. or to Officer. Risk call Form forward-looking including the Exponent otherwise. them, could And no forward-looking or to assumes in Exponent’s and Chief expectations that in cause risks

Dr. Catherine Corrigan

a the off provide will will Thank then we first you, business Whitney, questions. results call and detailed today. Rich, and for by for our reviewing financial then will start our and joining thank I you everyone review XXXX outlook, performance. us open of quarter more

include activity the and gradually is points period. same is became has many one human that as the margin complexity paused participant daily, of were altered and growing exceeded gain pandemic-related projects, results, new its and to increased XXX continues revenues world. reengaging services. Exponent related for to restrictions platforms clients of coordinated to the our and enhance for technology interactions Department scientific demand expanded to increased as machine and for medical health, safety, most existed and society for reliability. only performance. increased due were and aspects grew year technologies, their long-term U.S. studies and in Navy, a leverage were its Exponent momentum, expectations XX% at quarterly the the technology These Exponent restrictions sustainability continued monitoring wearables, EBITDA which as lives, Our available. eased engagement net our prior results and by abated engineering and industry to In vaccinations expertise prior to pandemic in time, expectations. quarter, are uniquely through strong litigation advanced devices Exponent bolstered they Army human assignments first and These enhance to and basis and challenges from effort governments strengthening, our continues business winning is raise Exponent understand health human Defense. The the widely not Coronavirus the but including on trends advise is has of more the work projects advises closures. vehicles. our now driving that trend that to to on physiological driving court human pressing improve continued to pandemic wearable positioned leverage prior

Exponent’s in On support we improvement litigation demand the side, matters. for reactive in saw

year Exponent’s quarter. by the Growth of see use and a in period. year in confidence services company’s to restrictions broad revenues strong Net XX% to As levels to as lift, the and other return and Exponent’s represented court progresses. first XX% we a reactive expect increased compared scientific of the more for and net driven range this demand as cases. in revenues segment across quarter industries first proactive prior was segment normalized there proceeding cases in is the engineering the

addition its multidisciplinary for vehicles our see in battery In increase continues and demand electric team the support steady to studies, litigation solutions participant in human energy and to storage.

environmental Our the work services revenues in the international company’s arbitrations represented Exponent’s effects first strong in and levels. revenues the the as continued first compared net this of quarter XX% increased segment health management period. integrity and to in in advisory quarter. prior and at Net regulation and X% chemical practice to of segment increased human grow, and products on activity human new evaluated segment This health projects safety as the year studies. of environment. also Exponent’s litigation-related benefited continue food The in from and support scientists participant the chemicals

health, I am for Exponent’s raise fueled the to over and continues has way over of clients our proud our Society safety, shareholders year. to standards employees deliver growth our to continued value the for have incredibly sustainability which reliability, and to years. last its XX that

and deliver of long-term our experts engineering to the of year provide Rich value full our the team first scientific as degree our detail a as uncertainty While XXXX reputation, for to and over us diversity to outlook remains, position now second I’ll of of call world-class to strong XXXX. disciplines, our market all the stakeholders. turn quarter the our quarter more well and drivers results, on durability discuss

Rich Schlenker

Thank everyone. you, Catherine, good afternoon, and

otherwise saying Let me start on noted. be comparisons a by year-over-year will unless all basis

the a as $XX.X increased $XXX.X $XX.X $X.XX to million for The per $XX.X XXXX, per which quarter the the increased increased recognized share, will ago the of or from and XXXX April income benefit $X.XX X million compared to was same as XX% XXXX. awards $X.X per the one revenues in from here reimbursements our quarter. first entity, first revenues diluted is share first of $XXX.X a share. tax or Exponent based $X.XX period. respectively, refer diluted which first or to million first million million quarter compared in or or share of year -- Net net of divestiture For in on, the X% quarter of closed as I of was revenues to German quarter million, -- the and to as XXXX, before total headwind them

As years stock a the are in and our March awards as most of granted annually later. part of released compensation program reminder, four

Utilization The a on is quarter date million, EBITDA event for quarter first first margin change primarily awards quarter X% XX% issuance from was increase revenue the $XX.X increased, of of of of as XX.X% to in it from and same As hours XX.X%, producing ahead share-based the net tax X% Billable accelerated XX% were compared determined and is were studies for year-over-year. German -- grant prior XXXX. of of in XXX quarter the an expectations, between in in quarter for of points the us. value Utilization a entity first as billable of of first up such, for first X% quarter quarter approximately the XXXX. XXXX. in accounted basis date. XXX,XXX, the increased The of restrictions revenues, and the based the is was vaccinations pandemic-related in relaxed increase human hours to participant and timing the support. which which the litigation quarter our an the benefit of

vacation as reason For second actuals taken the expected XX% below utilization and expect be in is second XX%, enter compared XXXX. quarter of the people QX of to XXXX, the XX% we to slightly will summer more forecasted days The utilization QX’s as to is there are be quarter vaccinated. we to be

period We to utilization be full-time year were the quarter for deferred back the to ago the accounted XX% vacations to Technical be divestiture in expect X% XXXX. the year-over-year normal of same expect sequentially pandemic. headcount a the XXX, than we XX% in the that of the as decline employees equivalent XXXX, compared year X% decrease XX%, The year entity, for as full half people and our due approximately of to German in take was to of in the due year FTEs full vacations do one ago. of compared higher the primarily the as year were period. to For flat which to

a from sequential for headcount rate benefit expect of X% to strong. realized included increase entity. approximately X% German recruiting divestiture grow activities sequentially flat realized We X% to are QX QX approximately The in increased rate QX the in The and quarter. as the and X% the be

increase For the to year, expect to realized approximately of the the rate year-over-year be X.X%. remainder X% we

year to expected compensation X%. million and Included in gain after Compensation in in result, compared X.X%. million, increased of expense compensation is total $X.X compensation adjusting deferred $XX.X of gains a to is realized losses X% full increase first loss rate quarter be of the XXXX. deferred as in a to for As expense the a

offset quarter was impact income miscellaneous $X.X in in expense As no compared bottomline. on Stock-based a the year have gains and ago. and reminder, million to $X.X compensation million, deferred a compensation as are losses the

the of to We million expect to $X.X each stock-based million $X.X compensation remaining quarters. be in

to activities million our year full the X% declined reason to million. $X.X stock-based to these operating the $XX were Other expenses for quarter. primary expense expect in Included $XX.X XXXX, down expenses operating $X.X due is we million. be to is million other reduced of depreciation in The compensation expenses offices. For

For million. the $X.X to $X.X to second expect we operating quarter, million expenses be other

supports fourth last expenses year, employees. our marketing do expect as to quarter gradual $XX.X losses and the believe year. to offices expenses environment G&A to The exit for results which be it as higher by the full to was We the office at to collaboration We of interdisciplinary and released XX% our in and associate G&A due $X.X million as We expense. value the a potential was first primarily over long-term we travel expenses retention anticipate we accrued our levels of pandemic for expenses million, year our provides decline recruiting. year. as for XXXX, quarter development, $XX down For related of XXXX, historic expenses operating debt and for staff in value in clients in to teams million other driven well quarter. which the meal the lower were return be our a bad to

scale activities as We expenses resume. expect to travel G&A gradually

to quarter the $X.X second expenses be to XXXX, of million. expect $X.X million G&A For we

million during the a to million, approximately result to quarter. $XXX,XXX and full the decreased a year steep to due XXXX, is Lower interest as income the Interest year. increasing $XX.X rates. recruiting of $XX,XXX G&A marketing For in income expect $XX.X expenses interest for to we be decline activities

approximately $XXX,XXX the for net full expect For quarter be $XXX,XXX. income or was per gain Miscellaneous year. to compensation of deferred XXXX, $XX,XXX interest income we

approximately tax quarter the for for $XXX,XXX to X.X% expect as rate miscellaneous year. benefit tax prior per we compared year awards, be in Exponent’s or was XXXX, X.X% the share full based million $X.X Inclusive the for period. negative quarter, income of negative the to For consolidated

tax rate exclusive expect be to remainder tax For year for XX.X%. of any approximately we the XXXX, the of our benefit

expect we flow the $XX.X approximately In March. prior we million year be million operating were shareholders In paid we quarter, dividend first cash CapEx the announced to $X.X quarter. in in cash we through Moving to to $X.X our pay bonuses for expenditures $X.XX second as dividend distributed quarter, XXXX, as was the flows, million in Capital $XX we million. the next quarter the well. a will Today, for -- payments.

As in of quarter cash and $XXX.X had investments. company short-term the million end,

in for quarter encouraging significant strong momentum, resulting to recognize than utilization, we along operating staff on expenses demand in trends based our forward, Looking improvement the normal are G&A and but the the improvements. services year-over-year and Coronavirus, our positive with margin lower that the unevenness there way. expect The and first maintain and be may

low momentum as across the result XXs the in compared XXXX and XXX to comparisons, grow increase second easier points period EBITDA the XXX XXXX. to points before the margin to reimbursements business positive basis quarter year-over-year same a and of revenues basis to expect in we As approximately our

EBITDA ability we up approximately to For XXX reimbursements the year high-single XXX revenues margin grow digits basis the in full as We expect low-double before to compared basis XXXX. to be to points and digits, to XXXX, points delivered closing in confident the I and the improvements grow turn profitability. of quarter call are another our sequential to to continue we across remarks. back will Catherine now to quarter first business in for the

Dr. Catherine Corrigan

Thank Rich. you,

and sustainable, the and upon as been on causes produce failures, reliable more healthier, processes. to than Exponent XX has advise called as clients to For well more safer, of products how more years,

growth. solutions. our and for we questions. engineers of to market itself As With Exponent world-class increase our evolve primed the long-term strong of is in positions a utilizing deep clients’ knowledge unique deliver team, complexity, ready ahead and multi-disciplinary curve, and team deliver are now drivers capabilities needs and Operator, scientists to

Operator

Thank question comes Truist first Tobey Sommer, from you. Our [Operator Instructions] Securities.

Tobey Sommer

the you to? with or what My reconfigurations first supply of expect to you. from global you’re Thank question goal do hearing chain has Thanks. some customers are to helping achieve potential and the for actively kind this post-pandemic, extent

Dr. Catherine Corrigan

Yeah. Tobey. Thanks,

in a number you you is that across side, consumer an consumer vis-à-vis if the particular the and think of our there chain can’t impacts clients in, So in clients about the in ability area particular be ground have really in where about in electronics a our of relates operate are some If what industries to on understanding Asia seeing these this our we’ve their supply the as for presence for to much. opportunity right? are, is electronics us really U.S. concern and the traveling of side automotive they our in when -- that been folks our we think situation

around that seeing, the some qualification they reorienting. are with being So to drivers of we able clients to extent some respect are advise to to extent demand suppliers

monitoring products, of the implications and some on types to of We their the product, of data in their implications things. related auditing failure are able help the terms vis-à-vis likelihood of understanding vis-à-vis them quality

primarily that seeing electronics products area. we that’s are consumer be is around area consumer And this so the to and the going

called Our Asia consumer primarily teams with are of to around impacts, advise in being those in regard some electronics. clients to

Tobey Sommer

Thank result that you expect an the it you’re a pandemic for year. as the the the as of active balance of that. did and like environment be the relative And attractiveness Has for for of to mention recruiting, what’s changed employer? Exponent you

Dr. Catherine Corrigan

Yeah.

channels. gain a So candidates. We’ve pivoted, standpoint take that through the really been side we’re course, of the pandemic. we variety candidates of now the virtual sourcing really advantage space the during are on right the to from very of of able focused way we We and these recruiting

having university a the can person One in to our reach these of and level run of candidates, as recruiting these of be have of of is virtual we on sort these a way able the environment much in broader -- channel have spectrum opposed to to campus. of candidates, we virtual been being diversity because those events to higher

our on of health as of that achieve process, environmental, the in now this of our able there. We’ve saddle we’re seeing They loose it’s I pipeline in able well. been to whether more and They reexamining competitors that They This side in sort accelerating have we’re a and candidates. -- recruiting. been folks our from is candidates with the to what very wanting of advantage our leaders the very on who have and networks focused sort of new our we people capture is maybe make disruption, using so a we’ve accelerate some that looking pulse changes we on spaces, been tried attending of so senior look, the various been have of the And to the seeing will, getting may to able of keeping folks -- senior sciences be variety recruiting whether we sources be that finger are we’re are you take of if the in are think opportunities their are is of environment be terms for got because interesting being healthy in to pandemic. and lives. of

very accelerate we’re our exceptional be third able so of quarter in headcount because profitability moderated maintain fourth our and being quarter some to we ourselves the second through focus course, get extent to had XXXX, going we to And on as the that growth, and we that that the activity quarter able accelerating confident have. to and which of we’re into talent

outlook Exponent of competitive that we’ve lots are opportunity. on we These a their are and But got recruiting they -- have it’s top positive finding as So ever. folks as one very as viewing choices. of we’re seeing

Tobey Sommer

levels? there and the real a your of net kind from exiting remarks ramping prepared any then of hopefully, on pandemic expenses, perspective, in -- that basis, you expense the see a travel pre-pandemic in exiting cost Thanks. sort you mentioned estate And difference is an -- business versus

Rich Schlenker

Yeah. able I savings those out to to Look, types see that will little expect of -- much path I that being were things. see what in going going time, doing we’re we that’s other look to in standpoint, be in margin continue What I the going a we allow of think travel locations. think expenses conferences forward time the is certain from before. level has in through be we able on into that But next recruiting I cost net and some shifted able expense? mass virtual pretty over we’re better several some think, are as our do share more, profile there to year-in, space better, a forms continue that area. squeeze to area When of a as this to to at been at bit going be it Exponent us do year-out, to this that to more of facility similar comes be that do working are a lower to critical expect we to expense mean, years. collaborate is to marketing those a we effective And be building meetings we were environment. or to that the moved that or is, to point

think that where effective still marketplace. are for will can I places invest also that need those our actually our to we more position also definitely communication there the that efficient less So business. some we’re think evolving forms more think in we We But other travel be and areas. enhance of in

Tobey Sommer

in, better courts’ for slowed the settle. projects and/or of degree of on some throughput projects away just last from sort perspective of would a went accumulated kind last as really would of now which parties And lack all to maybe word, those sort weren’t be whether we deferred year, question or backlog? of kind me, some sure of your What’s

Dr. Catherine Corrigan

clients they finding have their as counsel, with outside litigation we the who macroeconomic didn’t side, changed the folks, of a litigation to making Tobey. spending tell terms decisions make battles based on been the of their I’m They’re the things on really of not merits. on fight in-house Thanks, bit started And portfolios. will decisions I Yeah. well decline of time you, their the impact. the merits the lot around fair in case. see when they around, both I’ve to as how handle posture a really our of the Yeah. wanting waves settlements the engaged

for of willingness there to a reality -- what analyses the are we been of fall and depositions. becoming a trial real. like almost of there. see of dates. tends settlements happen or year deep They’ve what in but end is Of settlement, pushing even in-person them course, and is they in kind reports, and you demand the push to before jury and of us day, The clients side courthouse of And And get you’re get this things do tend you’re their preparing are been to we and cases the just it now doing or summer these dates those for majority preparation the settlements just these for the weighted steps expert happen. have is has to bringing for on up, to are an a plaintiff side. matters is settle, I’ve reports the as seen out, that fully at the you what here seen expert you get have committed the as very is But full vast that toward back defendant’s they worked real the really our the depositions, on the whether

we life are been to that’s quarter, continue brought part matters you activity really in improvement so, that of to here will. the if in this the back for see where being And driver the a

Tobey Sommer

you Thank very much.

Dr. Catherine Corrigan

welcome. You’re

Operator

comes question Andrew William Blair. from Our Nicholas, next

Andrew Nicholas

afternoon. Good Hi.

Rich Schlenker

Andrew. Hi,

Andrew Nicholas

on a relative way you where the the that describe at was any you how upside? I saw somewhat guidance, that in speak look there to outperformance when could particular you just course pipeline outperformance, otherwise might to pent-up maybe in to Thanks. hoping of saw a much what that’s obtain? And pent have of function then you your you curious if I it quarter relatedly, thoughts was is any that to as course? thing normal business, into flowing up versus demand of But versus more the a be normal maybe difficult realize described

Rich Schlenker

Yeah.

It vaccinations ready Let we vaccinations Look, guidance at one. came that the a turns bore just process we was would to of restrictions -- go pretty -- of out the were when we And quickly first started we long didn’t activity. the let February were the remember that about off those me increased. but last time, of eight We had to that. quickly all starting, We think, participant the early really the And coming down number devastating to were sort can positive human in coming how to participant on on we’re clients get to and very time down post-holidays. back the when wanting numbers quarter January the start what over go that know been restrictions, it that had us, the we a studies provided things see all able studies of our I impacts this go we and like. when ago. really in not for and weeks was full clearly, to go off human nine weeks, quarter,

have area. team, that of been one have quarter, I fourth a would until an the wouldn’t was the done in early in quarter, area that third say was at that earlier the difference, the but some first I’ve being that made I think, late work to occurred other of the really in activity that a quarter talked activity third might So quarter into it really earliest. maybe two-thirds

accelerated quarter give and total, going and it that’s was our of -- an X% was sense of some this in you there. to of and in just It there majority in revenues is just altogether of really product we that January. life a on. area -- X% going continued new, been on to the work February So X% occurring that in in probably, let’s the work wouldn’t is have This call from time the until cycle the

forward push we very the court that -- if that support to back, fourth a strong remember coming to on that -- was dates led and January, activity had fourth slowed firm depositions realizing quarter. activity. litigation That again a year-over-year. December the and good you really the saw all on of late reports a probably a February late Those we new to way the expert of little in picked those out, that side, really higher people vaccinations January we going really would engagements move to the really in were up but into on begin the up again, see to On were bit all the beginning started quarter and through back and activities. We’ve continued level

And area we you we’re -- doing work plenty in. would to first quarter have new is that level this starting XX% again majority in is I top say XX%, coming pushed of off the have So that and that the of of that would but pushing and a through, it’s deferred getting engagements have we’re out, part of been work might what come of been might that doing off. but be in work,

restrictions. this would and overall of area majority that work it added in what what we’re seeing in were we on litigation top, an but little when XX% expected the that have So, do of get we again, work continue we of being the to bit and we a is is -- that’s deep the being the

Andrew Nicholas

in the answer I you’re the could how just through being implied anything with if down or If second how like year call is a Thank look baking the you wondering, bit seasonality typical conservative vacations precursor, the at large? for world it uncertainty with bit sequential guide or a to besides context color. a revenue year? at end? given thinking follow-up I hoping was maybe as there that half, to little and in a cadence helpful And I’m maybe you. walk about much consistent the there’s you’re and you. detail more throughout of it’s Maybe step Thank remainder the as so us Really in seems your through else out

Rich Schlenker

Yeah.

those it’s think factors. of I So a lot

of fourth QX have easier First have and the we compares in in all, QX we than clearly, quarter.

on the in actually As mentioned fourth bit utilization I quarter moment was little a the was uptick a strong. of we a utilization realizations had rate had realization that seen We mix year. It headcount very was definitely realization projects, work, positive Based the a on just strong the rate strongest ago, on as the quarter. of the in and well of period. good based pretty

we QX is as a to view move do So comparison for different that. we us that forward very

realize in quarter of might And are on taking So be up realization that in that we bit well we’re doing a quarter underlying We people see expecting to see but summer, to see we’re think strong productivity the not year vacations the likely rate the the we’re as larger that last as -- to quarter, and to expecting of rate when a and are unusual that. little people because small of in get a of pressing fourth at to utilization fourth That a we of from be few just last than period. catching into we’re year over period little us stronger it extra as days going account. less bit year that fourth this time. on vacation taking going the was

time for that. so we the why this that And have at are and in out accounted uncertainties point is that there,

realize strong of of topline to that our quarter first the of go in rate of and Where the into back we back the we growth range, we’re the of that we the because we’re growth doing can good recruiting not the up we as years. mid-XX%s and factors, And good good this we We’ll count and and think are that, see is beyond. over You’re on to be tend XX% right, expect to it into into gradually next to lot seeing to start the go fourth inflation it’s because and fall utilization that. is range business but us go results XXXX. five will in. seeing to XXXX. fourth able quarter, we can that growth it time that that being XX% as low don’t to rate head will into into XXXX. X% to that low normal a a year-over-year that in four we Where right PhDs to this the layer into as now, increases year I see grow in the that time all all GDP as takes that rate demand earlier, environment we increase see hiring go a X% growth to indicated the as we into think in a next those but and year expect quarter year-over-year we for We that all expectation back over We all -- lead of again getting the get we’re

we beyond. we is go year think well XXXX ourselves as get to into that we and through So and as there things able be up to improve room the set

Andrew Nicholas

Very Thank color. helpful you. sense. Makes

Operator

Sidoti. comes question from next Marc Riddick, Our

Marc Riddick

Hi. Good afternoon.

Rich Schlenker

Marc. Hi,

Dr. Catherine Corrigan

Marc. Hey,

Marc Riddick

at that I would demand seeing, may out space? So on out wondering that both of kind and the user on focus that in what of could types appreciated I the production efforts, those side and dive increased the around really of far to you the how wanted of and as on portion. sort be sort given and cadence some I laid coming if worked litigation you piggyback you be positive the performances study similar recovery automated what as vehicles a may of take and the saw, was the you what way

Dr. Catherine Corrigan

right area of as There the automotive this advanced sort Yeah. the important as vehicles side both for it the now. an regulatory of uptick reactive The definitely And are actually us hits Thanks, driver been is around activity in well particular vehicles. -- an Marc. advanced has in the and business. proactive,

being vehicle That’s are around these the and safety of are. as driven and the where of of Exponent miles frameworks realities what envisioning actual out demand of it by manufacturers of a really the you test get of and are various seeing X,XXX in, sort at automated hour safety of vehicles a computer gets comes that environment We implications out roadways. XX per lab vehicles when on sort deployment pound the actually the advanced the the into of and

we’re piece, of see Motors going the vehicle So others And recently. of all be to that pledges electric around demand kind the kinds on and General is out… also rounding electric fleet side. you’ve are XXXX seeing proactive by

Marc Riddick

Right. Right.

Dr. Catherine Corrigan

statements similar demand. transportation of our increasing we so and in that … battery of expertise side are the pledge sorts on is sorts seeing

X regulatory drivers challenges. are its the kind pushing the in direction. marketplace meet kinds to As manufacturing But all Galaxy meet back demands in batteries if ramps I Note of up are and that Samsung the the phone. to of you There that the to of industry mean, remember

of they those through came manufacturing. when challenges All up ramped

out them very ways as different that are And there of and we’re they’re and you a crash seeing quality that those as so worthiness seeing are around safety and system. that there those and because different engagements Vehicle we the for concern reliability of but the fires are is opportunity systems. both vehicles, are put propulsion performance and vehicles, also just gas-powered systems implications electric well

it seeing we’re there. So

seeing litigation work We’re advanced around systems. assistance driver

fleet it’s not So deployed in the being cruise this kinds control… vehicle, this that’s technology fully lane now, technologies, automated fleet, the emergency is keeping of braking, is been the adaptive in a but

Marc Riddick

Right. Right.

Dr. Catherine Corrigan

plaintiff very are systems. have have to testing and always they on on These really position are vehicle around the of bar data capabilities places really edge is into taken made limit the -- are these around we ourselves cutting been aggressive and where performance as increasing. ahead and the so investments these systems around this the The curve developing safety litigation digging profiles

and be challenges deployment out technologies we existing closer deployed continue like in are performance proactively the to managing but failure reactively continue roads. get things quarter, past And then that they’re they of we’ve on once their and this it’s and once and XXXX and these the is the and both analysis driving to to arena, demand of actual closer seen automotive that also some so believe as through beyond the going

Marc Riddick

I technologies a standpoint, that on there general see for a was regulatory when and new And Okay. you guess local timeframe wondering to That’s maybe comes is like it can type I sort or type tend there, you. state Thank this really helpful. level then a from to and this the on thing for your you first yourself you be might prepare the of and involvement sort so -- type is see of coming what can sort of of what ones it that in jurisdictions framework of of doorstep?

Dr. Catherine Corrigan

is got not the it’s Yeah. a on the at to you drivers, And the if huge Because head how The is the really level, really to where means the definitely aiming and regulators, of question getting is themselves answer safe How ahead safety? whole the trying to are How is after vehicle been states do that assisting is needs can that’s the trying to of of industry licensing that mentioned, do for around that state us would have local that -- right? is advanced as so decide state be and and now. quote-unquote there you regulators level, an only be for you to right? the But to are to in and automated best a public practices -- regulatory pathway do Exponent and a that nail right? licensed area real different the you’ve be an clients. we where environment but -- trying state-by-state And demonstrate the we driver, that is for state if right? the they the you the be really when really can roadways, federal state than level, actualize get Well, area if focus terms states this so and a vehicle key what safe it’s enough on toward at community how more of hit manufacturers you should And level, could have -- so determine questions an you you’re are vehicles on actually necessarily that you going what roadway demonstrate. demonstrate something at help. the there the the human

Marc Riddick

just more pace or came about talk DoD that accelerated to done. opportunity bit one I then wearables there little and was sort the And about Can Thanks. promise that how I’ll be within and of that should of going how I and that you expansion we forward? the be think Okay. something a

Dr. Catherine Corrigan

Yeah. Yeah.

an to -- are those And proximity we been now in what’s were happening that, of that’s across doing is a the tracing. was contact because were monitoring of a very engagements level. on and exclusively really deliver across level, what the more of the seeing Army COVID-related where doing was we we what -- we’re Department So solution it we’ve as original it focused opportunity it able work at program at Navy But is now -- and converged the joint Defense.

with information a robust data of information different the in the We’re hardware of signs. looking detect the of and and sense in things and of from here. onto health the manage of that the issues are also armed security provides of to flow the ability data, kinds wearable human that architecture data forces. factors in sensors the those sensor device all associated itself, terms the physiologic and that from of How angles all a at wearable of and important to is you get the reliable variety The issues display. about the readiness The and way wanting

it’s so sort are the able being it data telling of to and manage and laboratory, out real taking the of it flow of of And what to provide out you. of about condition that sort insights sort data optimize the experimental into operationally

so through of Defense. And come in a expansion the joint across goes converged really a program solution where sort as of the Department has that that’s

Marc Riddick

very That’s you much. Thank great.

Dr. Catherine Corrigan

You’re welcome.

Operator

concludes in With we gentlemen. will no the the and you, Thank This today’s questions more ending ladies be queue, call. teleconference.

You may now disconnect.

Exponent (EXPO) 1 May 212021 Q1 Earnings call transcript