Ultralife Corporation

Good day, and thank you for standing by. Welcome to the Ultralight Corporation first quarter 2026 results call. At this time, all participants are in 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 1-1 on your telephone. You will then hear, I have been messaged by the Uranus race To answer your question, please press star one again. Please advise that today's conference is being recorded. I'd like to hand the conference over to your first speaker today, Jody Berfening. Please go ahead.

Thank you, Marvin, 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 2026. 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, alterlifecorp.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, and 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 cause or 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. Welcome to Ultralife's Q1 2026 earnings call. Earlier today, we announced Q1 revenue of $47.4 million. with an operating profit loss of $0.2 million, which resulted in a loss of $0.03 per share. We had a challenging start to the year on both sides of the business due to several factors, including order shipment timing, shipment delays to our Middle East customers, plant shutdowns for reorganization and weather events, and consultation fees. We have a growing backlog and product portfolio due to new product releases that we need to support this year, so we have added and trained direct labor resources in Arranum and Newark facilities to staff lines for the increased demand expected in 2026. This expense comes pre-revenue is critical given the nature of our products to ensure product quality. We now have new experienced plant leadership in both of those locations to drive manufacturing efficiencies and gross margin initiatives. Our communication systems business, which I acknowledge had another underwhelming quarter, has multiple new products and projects underway to grow the baseline revenue and stabilize the business. We believe in the upside of this business and continue to invest in product development to capture large, sustained revenue opportunities. A large part of the communications business continues to be government related with long development and procurement cycles for the products we sell. We exited the quarter with a record backlog of $115.1 million with over $12 million of backlog from products released within the last year. These new product launches are dependent on the launch schedules of our customers' product, and often we incur training and ramp costs prior to revenue capture. We continue our brand realignment under the Ultralife brand, which will bring clear, concise messaging to our customers that we design and deliver critical RF and portable power products. I will turn it over to Phil to talk through the detailed numbers.