Ultralife Corporation

Good day and thank you for standing by. Welcome to the Ultralive Corporation first quarter 2023 results conference call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be the question and answer session. To ask a question during this session, you'll need to press star 11 on your telephone. You'll then hear an automated message advising that your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Jody Berferney. Please go ahead, Jody.

Thank you, Kathy, and good morning, everyone. And thank you for joining us this morning for Ultralife Corporation's earnings conference call for the first quarter of fiscal 2023. With us on today's call are Mike Manna, 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 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 related supply chain disruptions, potential reductions in revenue from key customers, acceptance of 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 statements to reflect subsequent events or circumstances. Further information on these factors and other factors that could affect Ultralife's financial results is included in the company's filings with the Securities and Exchange Commission, including the latest annual report on Form 10-K. In addition, on today's call, Management will refer to certain non-GAAP financial measures that management considers to be useful 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. Thanks for joining the call on Ultralife's Q1 2023 operating results. Given a cyber attack at two of our facilities at the beginning of the quarter, I'm extremely pleased with the Q1 results and the efforts of our internal teams. We managed to improve gross margin over Q4 as our teams diligently worked through the cyber attack, which consumed time and resources to assess, restore, validate systems, then resume business and production operations over many weeks. As a result, we experienced operational inefficiencies in Q1, and could not take full advantage of our backlog position while experiencing surging demand from our customers, especially in the medical and defense markets, reflecting in large part the adoption of new products and the strengthening of our customer relationships. I thank our teams and patient customers for working through the production validation and restart we experienced in Q1. It was a great team effort. I will now turn it over to Phil to talk through the Q1 numbers.