Ultralife Corporation

Good day and thank you for standing by. Welcome to the Ultralife Corporation third quarter 2023 results conference call. All participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press TAR11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press TAR11 again. please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Jody Berferning. Please go ahead.

Thank you, Bella, and good morning, everyone. And thank you for joining us this morning for Ultralife Corporation's earnings conference call for the third 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 on 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 reflect 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.

Thank you. Good morning, everyone. Welcome to our call on Ultralight's Q3 2023 operating results. I'm extremely pleased with the team's Q3 progress to stabilize and improve gross margin. Our initiatives have started to deliver with a year-over-year 460 basis point increase in gross margin for the business, resulting in an operating profit increase of $2.7 million year-over-year. We have a strong backlog position across the portfolio that sustained in Q3 with a strong pipeline of new products that should continue to support our main objective of continued profitable growth. We have mostly recovered from the cash imbalance due to the cyber event reported in Q1 of this year, which will allow us to now start utilizing generated cash to pay down our debt, which is our highest near-term priority. This will provide headroom to examine accretive acquisitions and invest in strategic business initiatives supporting overall growth going forward. I will now turn it over to Phil to talk through the Q3 financial results.