Ultralife Corporation

Welcome to this UltraLife Corporation fourth quarter 2020 earnings release conference call. At this time, for opening remarks and introductions, I'd like to turn the call over to Ms. Jodi Berfening. Please go ahead.

Thank you, Sergey, and good morning, everyone. And thank you for joining us this morning for UltraLife Corporation's conference call for the fourth quarter of fiscal 2020. With us on today's call are Mike Populak, UltraLife's president and CEO, and Phil Fain, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning, and if anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecore.com, where you'll find the release in the investor relations section. Before turning the call over to management, I would like to remind everyone that some statements made during this conference call will contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. These include potential reductions in revenues from key customers, uncertain global economic conditions, and acceptance of new products on a global basis. The company cautions investors not to place undue reliance on forward-looking statements, which reflect the company's analysis only as of today's date. Company undertakes no obligation to publicly update forward-looking statements to reflect subsequent events or circumstances. Further information on these and other factors that could affect ultralarge financial results is included in the company's filings with the Securities and Exchange Commission, including the latest annual report on Form 10-K and the latest quarterly report on Form 10-Q. In addition, on today's call, management will refer to certain non-GAAP financial measures considers to be useful metrics and differ from GAAP. These non-GAAP measures should be considered supplemental to corresponding GAAP figures. With that, I would now like to turn the call over to Mike. Good morning, Mike.

Good morning, Jody, and thank you, everyone, for joining the call. Today, I'll start by making some brief overall comments about our Q4 and total year 2020 operating performance, after which I'll turn the call over to Phil, who will take you through the detailed financial results. After Phil is finished, I'll provide an update on the progress against our 2020 revenue initiatives and the focus areas for 2021 before opening it up for questions. For the fourth quarter of 2020, our battery and energy products core business hosted its third consecutive quarter of double-digit organic revenue growth year over year. Total B&E fourth quarter medical sales and B&E government and defense sales were up strongly despite the ongoing operational impact of the pandemic on supply chain, logistics, and customer availability. This solid core B&E performance fully offset continued oil and gas market sluggishness and led to a total Q4 B&E revenue increase year over year. Communication systems revenue was down year over year, again, primarily due to the prior year of vehicle adapter, the amount of power amplifier sales, under the U.S. Army's network modernization initiatives. As a result, total company was below the previous year. Sequentially, quarter-over-quarter revenues increased, and when combined with disciplined cost control, led to an increase in operating income by over 70%. For the total year 2020, with unprecedented operational and market challenges due to COVID-19, we were humbled to achieve modest year-over-year revenue growth and company-wide profitability. Also, focused working capital management throughout the year improved our year-end debt and cash positions. In a few minutes, I'll give you further updates on our revenue initiatives. But first, I'd like to ask Upside CFO, Phil Thame, to take you through additional details of the fourth quarter 2020 financial performance.