Ultralife Corporation

Good day and welcome to this Ultralife Corporation Second Quarter 2021 Earnings Release Conference call. At this time for opening remarks and introductions, I would like to turn the call over to Ms. Jody Buffening. Please go ahead.

Thank you, Sharon, and good morning, everyone. Thank you for joining us this morning for Ultralife Corporation's Earnings Conference call for the second quarter of fiscal 2021. With us on today's call are Mike Popolek, Ultralife's President and CEO, and Phil Fain, Ultralife's Chief Financial Officer. The earnings press release was issued earlier this morning. If anyone has not yet received a copy, I invite you to visit the company's website, www.ultralifecorps.com, where you'll find the release under Investor News 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 contain forward-looking statements based on current expectations. Actual results could differ materially from those projected as a result of various risks and uncertainties. The potential risks and uncertainties that could cause actual results to differ materially include the impact of COVID-19, potential reductions in revenue from key customers, acceptance of our new products on a global basis, and uncertain global economic conditions. The company cautions investors not to place undue reliance on forward-looking statements, which reflects the company's analysis only as of today's date. The company undertakes no obligation to publicly update forward-looking information to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect ultralized financial results is included in the company's filings with the Securities and Exchange Commission, including the latest annual report on form 10. On today's call, management will refer to certain non-GAAP financial measures that management considers to be useful metrics that differ from GAAP. These non-GAAP measures should be considered as 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 Q2 2021 operating performance, after which I'll turn the call over to Phil, who will take you through the detailed financial results. When the bill is finished, I'll provide an update on the progress against our 2021 revenue initiatives, then open it up for questions. For the second quarter of 2021, the company gained quarter to quarter, with sales increasing 3% and operating profit of 14%. Year over year, revenues in our oil and gas end markets rebounded, growing 49%. Medical sales abated from last year's COVID-related demand spike, yet were above pre-pandemic levels. And sales from government defense customers were soft relative to last year's strong shipment of vehicle adapter system sales under the U.S. Army's network modernization initiatives, as well as our 5390 legacy primary batteries. Supply chains and logistics continue to be the source of operational challenges, delaying some shipments and increasing freight costs. Given our solid liquidity position, we increased investment in CapEx and critical engineering resources to support new contracts and completion of transformational new products. Although these incremental costs and investments weighed on operating profit and net income year-over-year comparisons, sequential earnings per share grew 20% on the strength of gains in commercial sales. In a few minutes, I'll give you further information on our revenue initiatives But first, I'd like to ask Ultraliv CFO, Bill Fain, to take you through additional details of the second quarter 2021 financial performance. Bill?