ULBI - Earnings call transcript Q1 2021

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Operator

Good day, and welcome to the Ultralife Corporation First Quarter 2021 Earnings Release Conference Call. At this time, for opening remarks, I'd like to turn the call over to Ms. Jody Burfening. Please go ahead.

Jody Burfening

Thank you, Emma and good morning, everyone. joining the morning XXXX. first for conference Ultralife you for call quarter thank us for this Corporation's And of fiscal us Ultralife's are CEO call on Ultralife's With and President Mike and Financial Chief Popielec, Fain, Officer. Phil today's investor earlier Relations www.ultralifecorp.com The morning anyone the where a I you'll and received section. visit to under this invite earnings find yet was you not news the if Investor release copy, press in issued the has company's release website,

the is including Form factors financial could Ultralife's Form filings Exchange on customers, to management, that on the materially over products expectations. forward-looking would company undertakes undue and The company's XX-Q. and not like during Before conference everyone acceptance various statements update result call as latest uncertain in on and to These on a the economic XX-K turning and could contain key from current results risks uncertainties. publicly Further affect or I of basis. company's place the to conditions remind with based some latest this investors differ a and that the Annual projected as Actual on obligation to results Securities information cautions date. potential on The Commission, made statements statements company those forward-looking forward-looking only included circumstances. the reductions reliance global Report these subsequent today's call new no events of which will quarterly statements other reflect reflect analysis include of global to in report from revenues

that, management to considered Mike. These measures certain and useful to turn today's non-GAAP be With corresponding on I call, be refer differ addition, management would now from financial to measures over the to should like figures. morning, to call that Good considers GAAP In Mike. GAAP. supplemental non-GAAP metrics will

Mike Popielec

will call to some making update call. results. take which joining the Jody, XXXX is initiative performance. by I'll questions. for financial Phil through our an QX up XXXX over our about Good progress provide revenue operating finished, Today everyone, start it brief you, against you and turn before detailed overall on the for thank After the opening the Phil comments morning, who After I'll I'll

a For any digit posted up core the year-over-year non-recurrent amplifier XXXX, consecutive power first quarter year-over-year. our strongly vehicle than medical & Total total and year prior QX sales QX sales US Battery B&E oil previous with network quarter revenues the under government year-over-year over increase Products modernization of the and in gas initiatives. once growth. sales, B&E leading to revenue solid defense of Army's again X% adapter and decline year lower and Energy of revenue Communication the Systems overcoming first B&E double organic sales the business quarter fourth a were modern

quarter costs. like I'd take In but primarily initiatives Phil company, total through growth. Fain communication to gross earnings, due I'll first ask XXXX freight CFO offset our new on financial incremental to a details the XXXX and revenue updates to the performance. costs, revenue oil minutes sales strong additional expediting further you QX first the of and systems Ultralife's growth, Also For to modest give few you year-over-year core Phil? margin headwinds gas transition and both fully revenue QX, product achieve and in mix, lower impacted B&E

Phil Fain

the first XXXX. good this Mike March you, quarter results released XX, Earlier ended we for and quarter morning, Thank morning, everyone. our

website. in also I section helped those form you thank We who make the of and to which SEC with investor like find happen. relations this the our our have would XX-Q all filed our presentation, updated investor can

new period. earlier basis, increased sales government sales defense gas to market year, declined our were XX:XX first in with the sales million Battery for demand to decline customers, October initiatives along XX oil first and the segment versus XXXX to the to and the which increase announced million, pumps, X.X% by US with XXXX network the in year, commercial reported and between our the last sales sales X.X% modernization significant increase shipments while reflects approximately XX:XX support by products demand from compared three million, consolidated defense our COVID-XX for under decrease the industrial was Similar markets, of battery orders and compared XXXX in orders the government quarters, These of segment increase million amplifier in lower and a attributable gas sales, defense commercial consolidated X.X of the an than to revenues a were systems split The government totaled by battery oil in and a defense a XX:XX was higher from were variance medical in XXXX X.X% both communication XXXX. For was vehicle with XX:XX international increase communication impacts from of government Energy government and year-over-year sales the and quarter, The reduced to used & delays medical was orders. reflects sales quarter batteries from oil compared split of million last with QX reflecting The system XXXX. quarter, our the XX.X% to US offset sales. X were to in government sales. adaptor global for respirators the system contractor, defense XX% sales associated government a in year XXXX. XX.X% gas domestic due commercial quarter. second We sales. defense by of defense and market estimate On offset more for decrease higher last international infusion that in delivery Army's ventilators, medical a and completed XX.X reflecting some XX:XX split large defense Revenues from XX.X% quarter a Products XX:XX to to Revenues increase weakness offset XX.X year. from last

to profit X X.X was compared XXXX the period. million gross for consolidated Our million

with reflecting costs. and sales, multitude points basis volume year, of market last As of higher gross quarter. XX.X%, XX.X% XX.X% million products percentage of transition total profit XXXX, our to X.X from decrease and first of million a Gross and last a was new a business the reported gas products consolidated for was X.X margin for of lower costs impact Gross expediting incremental product oil the associated energy was compared freight incremental XX.X% year's last in battery versus margin to and year. production mix XXX revenues,

reporting For was X Operating million X.X earlier margin communication profit year system gross same compared segment, period. the Gross our million to increased for the both X.X million XX.X%, Expenses periods. was and X.X for or and last development new engineering product to offset sales travel in launches, from X%, by X year million. million investment lower costs. resources increase partially our This reflects market primarily for

the As systems. and were expenses versus for the XX.X% first lower first period a year's XXXX for for year-over-year X.X% percentage compared last communication of Operating operating reflecting net COVID-XX quarter. quarter, financial million was compared the the income for XX.X% revenues, XXXX of impact X.X% to Products quarter Operating for X.X% X was XXXX XXXX. X.X X.X% driven compensation to stock-based margin sales million EBITDA, business. million or for sales. quarter X.X% including EBITDA Adjusted compared & X.X million trailing a first or is primarily gross defined of the basis, margin sales non-cash X.X last XX-month the EBITDA to year, of in or lower by of million as expense was our Energy X.X adjusted Battery On of

rate X.X tax million reported for the benefits of Our reporting for on tax XXXX GAAP carry statutory forwards was XX.X%. of provision an provision excluding rates, compared and losses purposes. quarter while our operating X.X Accordingly, first computed credit based is our for first for quarter at quarter the net tax the million the effective

statutory the was rate, tax This to or per net XXXX taxes assets Using utilization operating the tax offset to share share income US taxes, tax our cash actual drive reflect and a credits. the to US as X.X paid on deferred tax credits paid X.X% other deferred of the and our be X.X for a tax losses per or net income first expected for adjusted basis to EPS net million or or by tax provision will down net While $X.XX non-cash million basis EPS diluted offset in adjusted provision defined taxes compares XX,XXX carry future. the excluding $X.XX assets expect only pay taxes foreseeable and quarter. for our when diluted on to XXXX XX.X% forwards quarter. that for of EPS fully all the we included operating We we loss will be utilized the

EPS quarter. the strengthened was further table quarter, XX% $X.XX basis supplementary and the million cash with on year-end release, share. $X.XX a XX% and estimate XXXX balance was to for compared Ultralife increase first XXXX first debt $X.XX hand first its the quarter of to to adverse to our XX.X quarter XXXX. in per share per noted As earnings the liquidity the the from adjusted on in that sheet decreasing X.X in We million EPS for adjusted XXXX COVID-XX diluted in impact for

in with We a first company first quarter, in the ended awarded working the million X.X to settlement XXXX. the X.XX XX.X lithium first of of current ratio antitrust of XXXX During of XX.X compared battery XXXX. million the capital year-end from for proceeds quarter and million ion received quarter X.X the

expediting to we development M&A. remain expenditures, while and fund through organic new our strategic a including initiatives, positioned organic growth capital result, product accretive well As growth

ample growth our it Mike. model. now full on will leverage diversified of steadfastly model, I business our the liquidity, with resilient we forward, and end focused releasing from remain back Going potential turn business markets initiatives,

Mike Popielec

and and Thank our opportunities you, revenue acquisitions. reach, new markets CapEx on growth focused increasing diversification, XXXX, continue and we product of In strategic expansion to development through Phil. sales potential be

markets, deleverage has and in reach has For diversification the which government business, and mitigate commercial defense defense our lumpiness as concentration as penetrating the well meant historical the Products Energy further Battery markets, market. global marketing international helped sales government expansion the US &

B&E of QX pumps, up B&E total represented robots. strong X-Ray, product existing and was digital For for XXXX, respirators, infusion ventilators, XX% revenue customers was medical XX% and in revenues. year-over-year surgical from global Demand overall applications

existing our delivery for customer received agreements. multi-year also blanket orders We medical into

with Our UK strong rate. double-digit a increasing solid another quarter, team delivered at sales

existing new medical in OEM CR major at and participation range device with European opportunities pursuing our customers for expanding of the and IoT customers new applications and with products. products are We ER new a

our in team core XX% energy in sales. SWE's to due subsea and Those Regarding our softness revenue, its total ongoing year-over-year gas, and battery SWE our down of electrification revenues were total product as market. oil with commercial from provided products. approximately revenue well QX sales our gas overall saw SeaSafe and SWE's and battery expectations and improvement of subsea contributions exceeded early equal We gas oil oil steady signs roughly as

investments manufacturing ISO recently for continue quality and the also do capability medical our to certified We in more SWE medical XXXX make levels business for to manufacturing of qualifications was SWE batteries. and to

XXXX various next opportunities newest DOD, engaged For or exciting DOD in OEM same battery primary chargers batteries. of new first B&E's approximately represent product defense we revenue US the be article entities gen with up for other for blend sales and government evaluation for primarily with radio pursuit is The was and XX% charge OEM DLA, and of customer time, XXXX capability. shipments the primes At also B&E in power results total year-over-year approval continue IDIQs ongoing to business, with CFx and XX% to on-soldier process testing, for primes. our

at Looking than three & or new products Products equal were ago. development, less from years introduced XX% to revenues product of Energy Battery

public During and next radio made generation the continued of including a was safety several but new projects, multi-year XXXX, conformal generation modular, first limited progress not large battery. battery energy storage medical next and batteries battery, ruggedized cart OEM format to on quarter military

UX automated development and begun targeting consideration robotics the are We Smart volume and guided anchor and have in completed customers. also currently full and markets production will applications as product new battery serve medical vehicles, manufacturing. recently of initial This future carts, under we variants such our

lines. runtime discussion line to product new customer premium to facilities our our new we mounts help At several dioxide folds This also production development revenues. for sales, radio wing we capable volt ground ongoing of CFS high applications. to a formulated for are industrial Communication in high and three growing volt systems, market high include a rate deploy manufacturing markets. helicopters. Newark, investment new significantly IoT enabling addition chemistry. and Initial throughout factor three at tools now fixed including cell York producing for and impact to will to the blended mobility our or available The multigenerational vehicle products identified supporting felt is are support address several QX continues in applications Overall less continue OEM product also products cell delivering The and product trials a longer primary as military to initial early awards. system program a ready. than remote new sensor planning, strategic battery represent installation New XXXX us offer COVID-XX form and a facility, completed newly expects thus in vehicles, and to production, enhance CapEx multiply radio communication In on be and delays rate sampling warrants differentiation. rate collaboration, In planning low in to line initial as handheld in blended customers. with and with platforms onto to and reliability and improvements, from similar with in vinyl using technical total new transitions cell CFS the investment manufacturing global the system and virtual engagement new production with to technical we next cell. and several our due with new chloride fulfilling equal anticipated of available three QX, specifications. Initial delivered using our our will stages to potential competitive were of first QX lithium XX% finalize other in development was customers three this sales overall China, ER and approximately variant in validate as In our full lower. prototype involves a performance of follow ER process phase large are are orders ago sustained years. and systems future which new for systems manganese project But These to designed years to orders product communication design a comp quarter upgrade commercial revenue multiple the project strengthen of have This process

communication power We other program for uninterruptible is for items. providing system growth will base XXXX. communication cutting-edge two-case and handheld This the in anticipating XXXX. system by systems and with the DOD with radios, QX remain from and diversification with further in XXXX. one March QX solutions. customer new successful HMS relationship, delivery and Radio a received key experience a US this of initial and supporting Fit and remain within into communication about the were for supply In in production volume completed broader upon integration the radio closing, evaluation, past ancillaries OEM provide filled a demands Army expected into Handheld, system growth is of very configuration trials strong OEMs, completion channel, the this with materialize two both, initial configuration Manpack expansion emerging and will manpack follow-on office, our Form DOD and to global Small Manpack, integration and single with forward ancillary in deliveries as with and integrated activity, performance of allow completed G&D optimistic anticipated markets. technology orders system to key QX order in and small were an systems with opportunities the with in calls, rates test solid procurement we focus XXXX. revenue year which quarter The is radio service consecutive with operational server of a delighted XXXX, in expectation evaluations Army in system be of in the QX integrations communications mentioned later products earnings another Army's the housing US tests This Updating with programs, start Regarding core is of quarter growth the program previous battery first Growth application with energy Leader US continued move our anticipated domestic business, another commercial the and later order business. system XXXX. future military on higher systems production for year-over-year for and market in orders area positioned key on systems well Based communication backup

While investing positive to we production to from flow annual additional product transitioning a and we that capture are company from differentiated maintain revenue new revenue support new and markets competitively revenue attractive In cash new projects. streams, resources growth in focused These on initial total maturing obtaining meaningful new balance sheet. in profitability, continue our solid sustainable transformational projects deliver products. XXXX, will are streams

volt potential include awards, accessories, is are amplifiers. on at As list the packs. radio limited computing next and to limited product the Manpack product Radio new these primary XRXXXA line, project medical line, not integrated three transformation B&E safety a and Smart and At product ER but the new the Thin other recap, includes not subsea solutions line, generation systems, and to new XXXX follow but batteries battery Cell UX battery OEM Leader public new several electrification XX CFX blend communication the

of consistency. We projects support transformational revenue revenue strategic these expect to growth well as objective completion as increasing rate, our of EPS and improving our

moving established As past forward forward. to way, out world we with of and we the vigilant our guidelines, look COVID in the employees harm's keep the remain following pandemic turning and

in are a markets, We mission some ultimate are and largest in umbrella particularly some the participate military the infrastructure, market. growing mega strong of key our to the leveraging markets, end fully in playing those defense, of position critical fastest which critical energy role medical, more

us model business growth by through pursue projects, our product disciplined acquisitions. total for opportunity and cash our of from CapEx strategic transformational solid management flow competitive balance new in seek a our out impactful As advantage sheet, development simultaneously revenue and strong affords invest team to our execution the company, organic and operation

prepared Our open and happy deliver the goal growth. year to Operator, in this remains we'd XXXX of next questions. my up for profitable concludes be to our remarks call

Operator

[Operator Benchmark now take Please our Instructions] ahead. Sullivan, The first will question Company. go We Josh from

is open. line Your

Josh Sullivan

you and morning my here. thank Good questions for taking

Mike Popielec

Josh. Hi,

Josh Sullivan

over those of we us can that into feet opportunities such right think should to help that just timeframe here, XX,XXX these organic coming of think XX us of if have contributors to an here to months. have the the from of - shift Just you cadence various you a next, all of just portfolio [ph], organize array now, know, you help just when XX these initiatives maturity, fruition investments you in are the

Mike Popielec

Smart the available UX Yes, now. production Perfect. I batteries, for are already as mentioned, right

first starting pretty getting shipped where for much and on balancing, the storage throughput prototypes have small of every been ramping We're chloride cases, and and the get wave batteries we've three supply we've The go customers, volts, the are for as project product thionyl to efficiencies the for up, we're of cells initial [ph] and improvements on ship one batteries we some years, and now. available And as initial that it about throughout out manufacturing to ER but we about the working initial last some of quantity also IoT demand, our couple production we get work ramping starting speak, And learning currently of didn't energy up all product curve. that we as to it's to this up talk now end some to of year. so it those it revenues. much and

Josh Sullivan

of an think I of should of we subsequent to development relatedly, as sales profile, how us raise tell of kind think of to the how margin just progression a the over? just should and engineering, or programs sales we up pick these end, margins, shift the is Got development there here. kind as need improving come programs marketing it. those and mean, just And then

Mike Popielec

the product if we someone new back they many want multi-generational product product to in year, in their we they so times from an X, X, programs develop perspective. on it, of even before our help product prior it in Now, products, as planning, unscientific look can them what of again, technical have sort and time us put hitting itself as we to in product some the and and a evolutionary months requirements, meeting way, had manufacturing take XX in develop new all that things, I line a new we're the place evolves cylinders, in a the call, addition

products, get But it's our next to and improve So top things, up margins products some where gross can I on mix, and not. we to legacy impacts period margins of gas I relates there's segments, some six-to-nine-month a to being think product rates think the right by oil margin. versus impacted we gross and different now, mix think talk full those market level And versus about about production how I that generally sometimes the generation products. start the also

Josh Sullivan

it. to Got agreements mentioned it. then you Got can some you medical general, of maybe in on just just provide multi-year some market the in And remarks? over color shifting prepared those the

Mike Popielec

and mean, with. I contract medical traceability markets and, lot it a be and long in begin lot so get time of to has industry lot requirements the for Yeah, There's a paperwork order. in to of to takes the a

projects, massive for end a price terms them front customer on to very delivery But change, to level things, unless requirements, where once So, change it in headache ongoing technical very end we're change pricing, some type to relationship relationship. type or just there's payment of a of it's technical massive then, of a a it's qualified. get be of it that sort in long time established sticky takes capability the those tends parameters, sticky, the such

we a or press expect just strategic release something and pokes for. it type one that isn't of those So relationships of sort we because or those I of on platform comment we core we orders. very from sort sort that's a now, couple sort a material a very, anywhere closely. And of sometimes track order any big of a get that a blanket a in we'll the million revenue to that something half delivery given of event through have do a But several quarter, million stream or of millions against those of which types threshold

So getting that the enjoy with through the need a point. multi-year years like to out and or - agony, be our and getting projects after relationship we customers, four sometimes with they where pain commercial of to three tend arrangements to worked all after

of lot Lastly, this spike you and COVID away goes is we all get forms, same many intuitively what not is new trenches seems said the I'll to even this away know, deliver in the stay say medical in together. with counter us been about, also have does just and an through these those and period pursue closer time when to a question our vaccinated battles but support the has and with been products or that, opportunity of we support sort that customers, customers, and COVID delivering is asked this data the I've on we've go everybody opportunities customers, only given because different activities that seem to with

Josh Sullivan

the I to elective the of people As exposed exposure do to how related return hospital, we of kind of to you are back kind as see to get surgeries? mean, to returning surgeries? people that, elective go And products your

Mike Popielec

quoted we and thought on. was we of that and for Q a the intellectually so went put goes impact appropriate that sure. is was into what not forth, to out COVID. elective in surgeries so build really our calculation it similar the being we and sure, of goes related And numbers of one and one mean, as And analysis I For of in performed. out result to think an things to those was for goes do

to massive So have we surgeries. like from is - elective yeah, I do if don't right where it's know exposure now it but

Phil Fain

you we I this. the can we'll of is XX% the call elective talked what when was increases. half in that surge, half to with the medical, could, and COVID - of confidence, increase to tell ongoing impacts, XX% that, related I about surgeries other and XX% COVID of that related Josh, quantify that the

I So, that's way solid that. looking of at think a

Josh Sullivan

field, the you cell us the is thin opportunity maybe it. provide medical helpful. And just on Got then within is the anecdotes any uptake No, early it there very coming? can how

Mike Popielec

that couple some quite hope into right way. next a quarters see I in discussions that to substantial the can't get but moving It's actually well. in We're we over would now increasing pretty

Josh Sullivan

look then Where market open the land more can deep the it. the Got gas signs your where we should general should look to in exposed? And of where on for market for Are uptake? recovery we early in sea market? or see products, early oil and see just maybe rig maybe your products you some

Phil Fain

steadily The we one we Friday interested get we counts, frankly, rig then we're Josh what every and international quite first at how of that the is one in morning, in, most been look is domestic number and is do when year-over-year rig both Baker things reports and count. increasing. that's And Hughes week-over-week,

bought SWE was WTI was pushing $XX, The second we this stock it we is thing the and $XX. approximately which look at, like the when watching price WTI, is the morning

those news factors probably travel is the of that are looking influencing two of some and of combination So bigger combination at us. regarding a the

Mike Popielec

the that I force those voices global And have we of calls listened in sales And anecdotally, Friday, could hear we you and on that our every it's basis, listen the exposed the it sales just I in being amount line. just on empirical improving. just areas. the a week-to-week they're activity the the those in mean, guys of in activity data to suggesting is

Josh Sullivan

some moving a of and past positive And your and do lot we products evaluation. you then in defense the that'll help that, it. of evaluation impacting testing trend curious forward? and obviously Just with moving you're And now had on the contracts facilities. Got seeing we're testing a if think COVID market just the ranges overall, in

Phil Fain

it's the results are But testing away there back always some to fast be very game in the hard the the a we no the and seeing. waiting been our as independently last from always And we're they're doubt that can. than Josh, end, evaluation, positive been in positive. testing products has as the as equipment delayed. working But that seem their we're lab think happened because year have our over and been for and as testing groups testing, we've as momentum has from and the on And, Yeah, pretty things I pushing been more have us gotten folks it's of in field delays have past. - - there's that there there

So that I are coming seem together. be that actions to and the overall indicators think there's positive -

Josh Sullivan

Got batteries and the opportunity we highlight together? mentioned, that large little be that one it. can just coming just a And format should more thinking maybe about you bit you how

Mike Popielec

than applications. talked various time, we we're haven't that of a very over for initial format at are large channel in about been shipments some product received sold batteries to that But it those do type some pretty in we've high partners years, our focused to We other level. that places, systems. protection on of do border starting And number of military, the government some well some other non-military, has of

brand product picture a So, there come a that still as our on but in of of picture it to there's it, I And investor was thought it's think a new area. presentation I well.

Phil Fain

Yes.

Mike Popielec

It's our [indiscernible], stackable format generation our modular battery a sort battery. after is of That multi next a kilowatt large type of sort of design. that's module

Phil Fain

bottom. page that's presentation our deck, of eight investor Josh, Yes, far left

Josh Sullivan

Perfect.

the thanks questions. again Well, answer taking time for my to Okay.

Mike Popielec

Thank John. you, welcome, Josh. You are

Operator

Thank you.

Eliot question We ahead. Gary will from our from Please go Management. now take Siperstein Rose next Wealth

line open. Your is

Gary Siperstein

with maybe other January a was Any WTI. the seen Hey, was February for and SWE, a little you starting the better level have sense in morning, guess better? it's In presentation. you already that your March the I in bottomed and or and talked about was and count worst that get good guys, the thorough worst, little orders? there? in February, you better thanks rig words Do

Mike Popielec

No, it's interesting, Gary.

my thought. were in comments, I mentioned they better than we As

thought. fact I better But not SWE. acquisition advantage taken So than technical the I But the mean, the moment would was but excited really with people and the worst, of slow to expecting you maybe we as with to have or predict the it's wanted did have we period also that something that to to the were on this comment we've get capabilities we take the recall, we and it like oil we were initial happen. associated gas,

for the in oil project on new ups of separate is there's and so defense already; working I has that we've and batteries. gone doing been meantime, SWE think market, military done or And also and two the while they're critical us downs charger some projects gas through

just this but year, oil a that ultimately, of but I indicators gas to but our time, seem too the think the we're of and if that's this soon tell cautiously serendipitous in continue on So positive. the rest core be over-exceeding market of going period to expectations they're way initially, type will optimistic to a it's

Gary Siperstein

end was a of tunnel in then starting little And terms to of like seemed towards at lot commentary finally fruition. move that, your Okay. projects a of we're investments, the these the leader, mentioned something see you it the of Is testing. a starting light and least And at lot that in testing these start orders? I to said or manpack, additional think of round seeing that handheld testing there about should more or in go you some does on completed QX mean to we

Mike Popielec

in our And delivered one full several of of but there's And process their should the absolute step discussions are the thereafter. one bandwidth. our are versus then partner, then being feedback sense, production, and performing in early going couple production through rate How months they an low those rate we over how's program we that. OEMs next the [indiscernible] there expectation? process part removed, an our are were in get with they months told indications year, recall, you are And again, of publicize. different by versus various our with that go went channel that of to this type award we're and levels overall the specification? we the evaluation does testing And the perform operations contracts through army of product may You on

is that'll So out actually that we're that file on and optimistic the way us it play for cautiously that product. radio for our feeder another opportunity there's

Gary Siperstein

a or some mean there's end that actually calendar? expect does by all next So of this do you the it start revenue to at year shot

Mike Popielec

But later. XXXX To is be hope it rather at that environment, would activity. very this honest, our probably happen about think in to overall I mean, prudent the would more than it we level, sooner

Gary Siperstein

you and commercial that revenue for Okay, that us. to get in systems and communication mentioned that's closer to then some customer starting

tell without particular guess, bit being the what customer industry product mention the vertical least us a the you sells I can't on a little can't the into what at can is - identify was, naming you you who customer, didn't it certainly You but customer? commercial or maybe

Mike Popielec

apologize product high mean, use. basically mean I I the to closer product, server elusive But Yeah, I and taking its is don't product, computing be to for that. end that server and end moving capability

data nice, as further cushy it's afield, into opposed somewhere. warehouse so, to of sort a And

sophisticated solution, successfully an integrating mechanically, the and applications role rest weather communication systems need. electrically, has into so done products, of taken that And piece equipment, so wise, here [indiscernible] expensive we've like and with served very and it of be the can integrated our so those

there's there's activities concept opportunity office, able in those it's actually it's are, several ability XG, way. to to have some used, areas, there's battle military automation, back just to there's supercomputing And source the applications some and to oil of and solution an versus gas. hardened so about. closer whole what some in our in closer the I That's opportunities factory all mean, and in power being different it's central a where in that integrate

we're solid to - have we're initial the so to open a record, this and for we these branches we're could orders, over up side, our if that us toe still that market came new side, to into in why on And try see have us. exciting the to it and starting just some then track in looking new and whole commercial is capability, end And military markets think for defense see leveraging think water commercial of a some government we dipping we integration that's OEM our extremely us.

Gary Siperstein

amplifiers? And around Okay. is all this our

Mike Popielec

the and ancillary that. Now, it's all mostly equipment the associated around with server OEM

Gary Siperstein

Okay.

actually So it's amplifiers. selling them? other not It's It's no do pieces? batteries, other what not we

Mike Popielec

just like this is thing we're we're the solution, high power event end except this are vehicle providing In main and integrated same complete the No, IO we've capability. other adapters, and cooling supplies the all doing we case, for - cases where there some do type server.

Gary Siperstein

Okay.

Okay. terms you the that's, that's so of think now, Thank ready finally. you mentioned go for last that I to color. volt, caller, in to the three And

got set for testing the So and space Newark all there's been that. and you manufacturing

or So this getting in either quarter revenues next should quarter. that some out start we of

Mike Popielec

point, already to immaterial but customers right to commercial starting revenues, results it's now. see some but We're we revenue, some this product at are smaller shipping our

Gary Siperstein

Okay.

about And the the commentary talked so cost you in COVID you $X.XX in quarter. the

I last versus hadn't So COVID. absence the last contract. from you had year And would to quarter last being actually in COVID $X.XX of everything else some that shipments and really the in guess in year, so year then $X.XX done started closer equal, one-time

year an have year, I'm without So of of you didn't apples-on-apples take this instead what then and if last last that sort that from we just curious it's that Is been or then apples-on-apples? repeat COVID - a you nickel would happened, with $X.XX, have out if $X.XX? think year would

Phil Fain

I'm made took well. systems. releases - was think that's there the look the and range in that be comments. to very it I as I a by is range. getting shipments was why level intellectually and can a I wouldn't it's your amount and of I And list less. communication significant and team think of down last is it out precise comfortable possibly COVID. a number to customer. our in a little in bit was you your in the year-over-year at big But the by be the last even comparison big year, challenging would a a mentioned, maybe $X.XX that shipments, It if numbers, impact Gary, did the impact year, it manual pretty honest literally and what our It's The the incremental Yeah, at What with accordingly cost it's do When as they confirmed. It's of math try to I I be as accurate. be look I

Gary Siperstein

Okay.

I completed of last QX year. in So those year, last shipments guess,

comments in are our comparison. hopeful starting And your year on have year, QX be I did should say to like setting I our this start that And increase Mike, maybe you our then we're last it comparisons QX tough grow last earnings be don't forecast but versus know you could front. should this positive closing last we the in think we So you profits. can - earnings that sounds up -

back pretty nice a which would fair? the all negative we imply potential could be that in half mean, I the through last that So get after comparison. QX, is

Mike Popielec

is. not present day-to-day on fully are Gary, But to And, to running total information the a year-over-year better and circumstances we as be impact do by we transparent we quarter year. business, the COVID, we what basis actually that for projects. provide just the themselves, but investment executing and people always what trying - of get objectives to done think they on only extra done, transformational about and done are sure making these We all their hitting to done make the done, we're economics. it's projects get some in terms to performance get want of be

a just basis, the quarter. don't from that reason year-over-year year to, We way. a just can So, execution basis, the difficult And it's success that perspective. just information we year-over-year this improvement take on things get it we and provided don't on we in last as control is control. think we day-to-day run But fill would the we focused mathematical all don't that

try get those really to execution a about improving in have. products done numbers to we the up. and providing that job So very efficiency all is we But I do getting think transformational transparent back and margins this

Gary Siperstein

Understood. Okay.

million M&A the now much the the them what six odds months or in of anything with XX no anything plus You you quarter. lot pretty in significant what's ammunition. companies, credit tell guess there? didn't close? you plus us possibility the of have of having - you've you say XXX and of talking Can million debt, filed to you that the half shelf line a million Can got four been $XXX getting you the cash, for about game of sort shelf, being five months? year. some on acquisition of or XX going Is changing Do back I

Phil Fain

of have it. about knowledgeable individuals trying the really find of a to acquisition and into of out meets us criteria. have industry companies lot I'm our some right in a that lot not with get that I'm certain going you I the very But there who majority spending, the other my very, to for specifics. sizzle cases, time that's There's Gary, tell will that

to and contribution that active have SWE for back quarter. not that allow since criteria We're and changed. accretive meet Accutronics expanding one great will market contribution both has our the for us that. day very the that involvement, same made, at we for while look made, profitable our And has Our great I'll M&A looking growth every diversification end leave continue our companies that it at the and criteria time at

Gary Siperstein

didn't there's I bit. testing maybe a to of is through lot year? said sort we IDIQ maybe described talk and mitigates those know the didn't XX more? word little use as closer are COVID missed this That's great. is I And testing? you great. better, IDIQs, But and hesitation get a or it'll XX, it, potential getting That's product still about some the been million you And And in it a but revenue maybe opportunity moving that the

Mike Popielec

fall we're the timeframe. And that an For - and we'd next I process gen sure. every fall, update something And testing would iterative is would to This delivery the working for is that have I weeks would are we're The review close the the hope with latest it's through three XXXX, in be be done the process, we personally. government. to finished go orders. summer then timeframe. in XXXX, And, ready hopefully, up late getting

off with out there at mentioned, offices got and some pushing So it plate, it testing Josh of in time, our the lot and some is haven't their the people has but other too. things we eye taken in as an of iterative evaluation of our same delay we've keep yet. on been and process and We a

fall sure know, make But to we we're right yeah, and about And timeframe, XXXX. the the [indiscernible], to late right fall, people involved. XXXX, have the late the this get process. you then, trying hopefully we're summer have So to trying through that's visibility, we

Gary Siperstein

thank Okay, you that Mike. for color,

in follower. will, time decade last the in are mean, remember customer, whether continuing elective com So surgery the the of the out can't the just to recovery has a shareholder I and another as, pregnant of manpack, the I three and it's IDIQ, been things, handheld, Leader, company conclude, volt, you as long-term the when you SWE, if been QX the as the this some in systems, these opportunity. has commercial the once gas, recovery oil we're the have like production, could into waiting get nine projects quintuplets start I mean, shipping. and increase. comparison in than God, we're and the and full seems seems through pregnant my months, last it different these as baby medical. move gestation as longer to But of with for we and now then negative been And we it margins Maybe crown. I've you the tremendously

on So fun It I'm looking coming brink. forward some we're seems to the shortly. very up

and congratulations. So thanks, guys,

Mike Popielec

Appreciate Gary. it. Thanks,

Phil Fain

you, Thank Gary.

Operator

Michael Thank That will to now back you. call the turn for conclude will remarks. today's Q&A closing and I

Mike Popielec

as the All right, everybody great. for the a each thank progress in you We did once our forward first again, in Well, very do presentation for call sharing update, it joining as and have so much quarter website, Phil XXXX safe quarterly the you conference you quarter's Everybody to day. us Thank participating. mentioned, of call. for with earnings look future. really check in great out. We investor each we quarter, the

Operator

gentlemen, that Ladies conclude and conference. will today's

You may disconnect. all now

Ultralife (ULBI) 3 May 212021 Q1 Earnings call transcript