Ultralife Corporation

Good day and thank you for standing by. Welcome to the Ultralife Corporation third quarter 2024 results conference call. At this time, 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 star 11 on your telephone. You will then hear an automated message advising 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 your speaker today, Jody Berfening, Managing Director, Alliance Advisors, Investor Relations. Please go ahead.

Thank you, DeeDee, 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 2024. 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, 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 uncertain global economic conditions, reductions in revenues from key customers, delays or reductions in U.S. and foreign military spending, acceptance of our new products on a global basis, disruptions or delays in our supply of raw materials and components due to business conditions, global conflicts, weather, or other factors not under our control. 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 are 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. Welcome to our call on Ultralife's Q3 operating results. Earlier today, we reported Q3 sales of $35.7 million and operating income of $0.5 million. resulting in two cents of EPS. Battery energy product sales increased 1.9% over the prior year's Q3, with communication system sales decreasing 58% to 3.2 million as we continue to diversify that business. Our top three initiatives for the year, material cost deflation, lean productivity, and sales funnel improvement continued progress in Q3. With multiple lean events completed in both businesses, and captured future material cost deflation in several important areas, including lithium metal and printed circuit boards. We are seeing sales funnel opportunity growth, especially in thin-cell and thionyl chloride products, and are focused on closing long-term supply agreements with several customers in our target spaces. I will turn it over to Phil to talk through the detailed numbers.