Ultralife Corp. (ULBI) CEO Mike Popielec on Q1 2019 Results - Earnings Call Transcript
(NASDAQ: ULBI) Q1 2019 earnings call May2, 20198: 30 AM ETCompany participant jody Burfening-
Finn, president and chief executive-
Chief financial officer attending conference call
Good day, Eliot rose wealth management operations, welcomes you to watch Ultralife Corporation\'s first quarter 2019 earnings release call.
At this time, I want to transfer the phone to Ms for opening remarks and introductions. Jody Burfening.
Thank you, Leanne. good morning, everyone.
Thank you for joining us this morning to attend the earnings conference call of Ultralife Corporation on 2019.
Today we are talking to Mike Popielec, President and CEO of Ultralife, and Phil Fain, chief financial officer of Ultralife.
Earnings press release was issued earlier this morning.
If someone has not received a copy yet, I invite you to visit the company\'s website www. ultralifecorp.
Com, where you can find the press release in the Investor Relations section.
Before handing over the call to management, I would like to remind you that some of the statements made at this call contain forwarding
Forward-looking statements based on current expectations.
Due to various risks and uncertainties, the actual results may differ significantly from the predicted results.
These factors include the potential reduction in revenue from major customers, uncertainty about the global economic situation and global acceptance of new products.
The company reminds investors not to rely too much on forward trading
The report only reflects the analysis of the company as of today.
The company does not assume the obligation to publicly update and forward-
A statement reflecting subsequent events or circumstances.
More information on these and other factors that may affect the financial results of Ultralife is included in the documents submitted by Ultralife to the Securities and Exchange Commission, including the latest Annual Report of Form 10K.
In addition, in today\'s telephone management, some non-
Management believes that GAAP financial indicators different from GAAP are useful indicators. These non-
GAAP measures should be considered as complementary to the corresponding GAAP figures.
With this, I want to transfer the phone to Mike now.
Good morning, Mike.
Good morning Jody, thank you all for joining this call.
Today, in my prepared statement, I will discuss two topics: our 2019 operating performance in the first quarter and the end of the exciting acquisition that was completed yesterday.
First of all, I will make some general comments on our operating performance of 2019 for the first quarter, and then I will transfer the call to Phil, who will take you to the detailed financial results.
When Phil is done, I will provide an update on progress, including acquisitions, based on our 2019 revenue plan and then ask questions.
In the first quarter of 2019, both of our business units experienced a year --over-
Government defense revenue fell for several quarters year on year, which adversely affected our operating performance.
For the communications system business, shipments of our leading radio auxiliary components started at 2019 in the first quarter, and when we spoke to you during the conference call in the previous quarter, it was much later than expected.
As we increase the production of these devices, we are currently working closely with our channel partners that are below $19 million in the USS.
Army delivery contract, you remember we received it for 18 years in October 20.
Revenue for the first quarter of the battery and energy products business fell 2019 year on yearover-
Due to time differences in several aspects of the United States, this yearS.
Government defense revenue channels, as well as noteworthy weak revenues from our Chinese manufacturer\'s ABLE product line, which are still subject to tariff restrictions.
The medical sector remains a bright spot in our B & E revenue portfolio, achieving a double
In the first quarter, the digital growth in revenue completely offset the strong weakness and led to a 4% increase --over-
Our overall business income.
The recent volatility in our government\'s defense revenues underscores our motivation to continue to diversify our end markets, especially in the business sector.
To this end, based on our success in organic and penetration of the medical market through acquisitions, we are excited about our next acquisition, which brings us into the oil, gas and undersea electrified market.
In a few minutes, I will introduce you to our organic revenue plan and the strategic rationale for the acquisition.
But first of all, I would like to ask Ultralife CFO Phil Fain to bring you more details about the financial performance of 2019 in the first quarter. Phil?
Thank you, Phil. good morning, Mike.
Earlier this morning, we released our first quarter results as of March 31, 2018.
We also submitted Form 10-Q and Form 8-
Contacted the SEC this morning and updated our investor demo on the Ultralife website.
I would like to thank all those who have helped make this happen.
We also announced the acquisition of Southwest E-energy.
After I review the results of the first quarter, I will discuss the financial and accounting implications of this transaction.
In the first quarter, combined revenues were $18.
9 million, equivalent to $4. 2 million or 18
A decrease of 2% from $23.
The first quarter of 2018 reported 1 million per cent.
The combined revenue is largely affected by the delays experienced by our communications system business in producing and shipping amplifiers to support the USS.
Military network modernization program under $19.
2 million delivery orders were announced in October 2018.
Through our first quarter financial performance and other reporting indicators, sales fell.
The commercial split between government and defense is 53-47, versus 42-
The same period last year was 58, reflecting a 4% increase in revenue in the business sector, down year on yearover-
Annual government and defense sales of the two companies.
Revenue in our battery and energy products sector was $16 million, down $1. 2 million or 7.
1%, growth in business income was offset by a decline in government and defense sales.
Business sales of $10 million increased by $0.
Last year\'s 4 million was mainly from 10.
Medical sales increased by 4% in part by 9-volt sales.
$6 million in government and defense sales fell by $1.
5 million from the 2018 period, mainly due to the time of delivery to the United StatesS.
Defense and non-defenseU. S.
As a result, the sales share of battery and energy products between business, government and defense is 63-
Compared to 56-37
The period 2018 was 44.
The geographical distribution of our battery and energy products sales, the domestic/international market share is 47-
53 compared to 55-
The first quarter was 2018, reflecting an increase in demand for our medical products in the international market.
Revenue from our communications systems division is $2.
9 million, $2 less.
9 million more than last year.
The reason for the drop is the delay in starting the AMP production and shipment to support the U. S.
Delivery note for the Army
Revenue for the first quarter of 2018 includes shipments of US automotive amplifier adaptersS.
Under the contract granted in December 2017, the Army Special Forces assistant brigade and the delivery of electricity to the world\'s large defense forces.
Our combined gross profit is $5.
Compared with $7, 1 million.
3 million for the period 2018.
The percentage of gross profit margin to total income was 26. 9% versus 31.
The first quarter of last year was 6%.
Gross profit in our battery and energy products business has dropped by 12.
4% to $4 from $5 million. 4 million.
Gross profit margin is 27.
6%, 160 basis points less than 29.
Due to the unfavorable sales mix, 2% reported last year.
The gross profit of our communications system department is $0.
7 million, $2.
The same period last year was 3 million.
Gross profit margin is 23.
Compared to 38, 4%.
4%, mainly due to the cost incurred in starting production of the amplifier in accordance with the order received on October 2018.
Operating expenses total $4.
5 million is $4.
Last year was 9 million, largely reflecting continued strict control over discretionary spending.
Operating expenses accounted for 24% per cent of income, compared to 21.
The first quarter of 2018 reported 4% per cent.
Operating income for the first quarter of 2019 was $0.
5 million, $2.
The 4 million period is 2018, and the operating profit margin is 2.
The period 9% was 2019 per cent compared to 10 per cent. 2% last year.
First quarter non
Cash operating expenses including depreciation, amortization of tangible assets and compensation for shares are $0.
8 million, $0.
The same period last year was 7 million.
This brings us an adjusted EBITDA, defined as EBITDA, including non-cash stock-
Basic compensation fee of $1. 2 million or 6.
4% of sales, compared to $3 million or $12.
9% in the first quarter of 2018.
Other expenses consisting mainly of interest expenses and foreign currency transactions were reduced from $133,000 to $58,000, mainly due to the growth of the US economyS.
The dollar against the pound the previous year.
Our taxes for the first quarter were $41,000, compared to $55,000 for the 2018 period.
Net income for the first quarter of 2019 was $0. $4 million or $0.
$03 per share, net income of $2. $2 million or $0.
14 per share in the same period last year.
The cash we have is $21.
A decrease of $2 million.
Starting at the end of last year, $7 million.
Inventory has increased by 1 million, mainly to support the implementation of our communication system in the United StatesS.
The army delivered orders and bought back 227,300 shares in the first quarter, bringing the total number of shares repurchased since our board authorized a 2 to 372,774 shares.
5 million share repurchase is planned to take effect on November 1 for capital expenditures to support our CR123A and sulfur chloride strategic projects.
Our strong liquidity and capital acquisition capabilities allow us flexibility in making capital allocation decisions.
To this end, in addition to supporting new product development investments, capital expenditures in stock repurchase plans, we fund our acquisition of Southwest E-energy by cash on hand and withdrawal of revolving credit.
We have also completed changes to the credit agreement, including 5-
The annual fixed-term loan of US $8 million was not penalized for early repayment, and the expiration time was extended by 2 years until May 2022.
Regarding the acquisition, we will make adjustments and direct costs in accordance with GAAP records for the second quarter of the transaction-related procurement accounting.
Considering the acquisition-
Related expenses and interest expenses, we expect the transaction to increase to earnings per share in 2020.
All in all, the actions we take to drive profitable growth remain our top priority.
Our goal remains to drive sales and sales through further organic and collaborative initiatives, supplemented by value-added M & A, to give full play to the potential of our business model.
I will give it back to Mike now.
Thank you, Phil.
2019, we continue to focus on increasing our revenue growth opportunities through the diversity and expansion of market and sales scope, new product development and strategic capital expenditures and value-added acquisitions.
I am pleased to announce that yesterday, the battery and energy products business completed its acquisition of Southwest E-Energy Corporation in the city of Missouri, Texas. This bolt-
After the acquisition, by entering the oil and gas exploration and production as well as the seabed electrified market, further support our diversity to commercial space, which is currently basically not
Provided by Ultralife.
Another important benefit is the acquisition of a very valuable technical team of battery pack and charger system engineers and technicians, and we are very happy to be able to join our new product development --
Revenue growth programs in our business end market, particularly smart metering, asset tracking and other industrial applications.
Acquisition works well with our core, with a focus on mission --
Key niche applications with competitive advantage based on quality and reliability, long term, high value customer relationships and similar good relationships
While this business is cyclical, we expect it to at least deviate from our existing US demand cycleS.
Government defense market
To let you know what this acquisition means to our potential revenue contribution, Southwest E-Energy\'s revenue in 2018 was about $28 million, which would mean an increase of about 39% in those annual revenues, or an increase of 32% in the company\'s total revenue, from the percentage of total revenue, it will account for about 24% of the company\'s total revenue.
Our first day of 100 is about to begin.
Today, we worked with the team in Texas to develop a day-long integration plan, and we plan to keep them using a similar approach to our successful acquisition of Accutronics.
Finally, we expect the revenue contribution of Southwest E-energy to grow in the first 12 months.
Further research on the battery and energy products business, the expansion of the market and sales scope has been committed to spreading more business to the global commercial market and the International Government defense market, to reduce revenue fluctuations caused by US market turmoilS.
Government defense market demand.
In the first quarter of 2019, business and international government defense revenue accounted for 67% of our total B & E sales.
From our business income of 2019 medical sales in the first quarter, global medical sales accounted for 34% of total B & E sales, up 10% year on yearover-year.
Total international sales of B & E increased by 8%, mainly medical productsdriven.
2019 for the first quarter includes respiratory equipment, medical carts, infusion pumps, automatic in vitro vibrators, digital X-
Lei and surgical robots
New delivery orders for the fourth quarter
Long-term customers under package and/or multi-year agreements total over $4.
3 million, good ongoing revenue from these customers.
In addition to medical care, we continue to explore other targeted commercial end markets, including industrial equipment, safety and security, metering and sensors, asset tracking, In-
Transport entertainment drones, drones and the internet of things.
Several of these projects include more intensive product sales in our Chinese factories, with 2019 of product sales in the first quarter more than four times higher than in the first quarter of last year.
Finally, in the United States of B & ES.
Government defense enterprise, Q1 2019 years into 21% yearsover-
Driven by project time and basically the same 3 customer channels, this year is the case: MoD, OEM prime, energy storage companies, who last quarter maintained strong in the US quarter and throughout the yearover-
Annual revenue growth has once again demonstrated the variability of demand in this segment.
The 2019 shipment in the first quarter included a variety of batteries and a variety of OEM prime numbers for the Ministry of Defense tactical communications.
We also received several new orders and submitted several large proposals and responses to US leadsS.
Government defense clients
Finally, we have started the testing of the first article and the production preparation of the next generation of 5390 original batteries, and the new CFX plan 5790 battery will be launched next, let\'s get closer to preparing to receive again the delivery order for the multi-year doa idiq award received in 2017 for approximately $72 million.
Regarding B & E\'s new product development revenue, in the first quarter of 2019, revenue from product engines accounted for 12% of B & E\'s total revenue less than three years ago.
Activities for various products continued in the first quarter to supply new product development funnels such as new military communications backup batteries;
Non-military communication batteries for the public security market;
Batteries for industrial applications;
Development of our smart U1 product line including a new voltage variant;
Battery solutions for medical and digital imaging applications;
Batteries for cardiac AIDS;
MGPP improvements in our final chlorine battery product line for industrial, metering and IoT applications for a global customer base.
We will continue to provide long-term value and strength.
By working closely with key customers in new product development, developing existing products through multi-generation product factories, and helping our customers expand the competitive advantage of products and establish long-term relationships.
Finally, with strategic capital spending, we continue to attack on two fronts, namely, developing and manufacturing new products that provide fast service to IoT applications
The growing market for wireless devices and the next generation 3-
Volt smoke alarms, asset tracking equipment, and metering.
At our factory in Newark, New York, we have successfully completed the United Nations Transportation test in the United States. S.
The products produced enable us to start shipping samples and small batches of products in April.
Automation equipment for high-end 3-mass production
The previously announced volt primary battery product line is priced at $4.
In the first quarter, with the installation of integrated self-service devices, 3 million of capital investment continued to arrive
Semi-dry operations starting in April and deep [unrecognized] and commissioning activities expected to continue in the first half of 2019.
These new products will provide customers with the world
First-class product performance, security and competitive price value proposition, as well as supply chain proximity in the USS. -
In China, our new locally made lithium manganese oxide 3-
We have supplied samples of several volts to our customers and we are increasing to the full production volume.
Our goal is to produce the highest value products, the best quality and the safest products, among which everyone in our global location can best serve our end market and OEM customers
With regard to communication systems, in the first quarter of 2019, new product development revenue from products under 3 years accounted for about 68% of communication system revenue.
Shipments for the quarter included 20-
50 W amplifier
Initial IDIQ contract delivery of watt amplifiers and non-standard commercial vehicle communication kits and installed power amplifier systems to support U. S.
Measures for the modernization of the Army Network.
2019 in the first quarter, for the United StatesS.
Army network modernization lead radio program, we lack the expected mix and quantity targets due to integration, supply chain and delayed testing challenges, therefore, the expected q1 is not fully put into production.
However, with the resolution of these obstacles, as of the end of April, we completed more production units in the first month of the second quarter than all production units in the first quarter of 2019, so, second-quarter shipments are expected to grow stronger than in the first quarter.
Continued focus on military spending and modernization provides a solid overall opportunity for communication system products, and we are still in a new and follow-up vantage point
At the awards ceremony in the United StatesS.
The army\'s hand-held, manpower bags, and small fitness programs focus on the leader\'s hand-held radio.
These systems have been integrated with specific handheld radios from OEM defense partners to provide a high level for soldiers
Increased communication range, enhanced digital voice and data connectivity, increased operational flexibility and readiness.
Over the years, the new product development program has continued to drive a significant portion of communications system revenue, and we continue to work with OEMs worldwide to identify new capacity requirements and expand our products to new markets
We continue to strive to improve the new product development capabilities of multiple synchronized major projects and to achieve development and production innovation.
We will continue to develop technically superior products to increase combat operations by this number of war fighter aircraft operating and installed on the latest radio programs and solutions on ground mobile, offshore and air platforms
Finally, in 2019, although we were disappointed that, under the recent contract for a large communication system, meaningful production for the installation of amplifiers and vehicle amplifier adapters was later than expected, we are working hard to get back on track in the second quarter.
As noted last quarter, the total value of communication systems at the beginning of this year was
The backlog at hand is almost 30% higher than their total revenue of 2018, and it is expected that the backlog will still be shipped in 2019.
When we ship according to the current contract, we will continue to develop other new products
Opportunities for driving integrated communication systems projects.
As for the battery and energy products business in the first quarter, we are pleased to start the new year by acquiring Southwest electronic energy, not only for new customers and the revenue opportunities it will bring, at the same time, we will also have strong teams and technical resources that will be part of our global team and strengthen our global team.
At B & E, we are still looking for some mature new products and projects, including the new 3-
Volts in the world
ER-class product line, smart U1 battery, multiple medical market expansion opportunities, government/defense 5390 and 5790 original batteries, oem stc and leader radio and public safety radio battery packs, and the prospect of countless 2590 rechargeable batteries.
As a company, we continue to expand our market investment and sales to create more revenue opportunities. New product development and strategic capital spending, and continue to focus on the prospects for future revenue growth in the medical and industrial markets, the Internet of Things market, the USS.
The government/defense market, as well as the electricity market for oil, gas and the seabed.
We are still committed to achieving our goal of increasing revenue every quarter and year --over-
We fully expect a year of profitable growth in 2019.
This is the end of my speech, operator.
We are happy to start asking questions. Question-and-
[Operator note] we will answer our first question from Gary seperstein along with Elliott Ross wealth management.
Good morning, Mike and Phil. How are you?
Good morning, Phil Fink.
Gary SipersteinSo Mike just wanted to be clear, so by reiterating the backlog and talking about those delays, we didn\'t lose any customers because of those delays.
So everything is still intact?
It\'s just that they were launched a little bit, right?
This is correct.
Gary sperstein Okai
As you said in your comments, you made us believe $19 last quarter.
2 million, I think this is the order for the VIP snake, half of the first quarter and half of the second.
So, you bought some initially and shipped it in the fourth quarter of last year.
Then you mentioned that there is something on Ultralife that you want to improve, which leads to the delay.
Since the conference call is in the middle of the first quarter, what is the change?
Will customers back down when they want delivery?
Or did you take a longer time to solve the problems that came up from the fourth quarter to the first quarter?
After that, what changes will happen when you lead us to believe Q1?
I did say that, which is why I made a direct comment in the prepared statement.
Just the ongoing complexity of really doing 3 new synchronous amplifier designs at a time, which is a huge amount, and I would say that all the participating project teams have made a huge effort, our own project team as well as the project team of the OEM partners and some of their partners are also trying to coordinate the overall design of a very complex configuration.
From the perspective of equipment, it is the time to experience and complete the design and complete the complex communication between the three different parties, any changes made during fine tuning or testing will trigger a new sort of components and lead times associated with this.
These things add up and I certainly don\'t want you to afford all the details of your day-to-day business, but in general they get us where we are today.
So, I want to make sure it\'s very clear.
This is different from what we thought before.
It really has nothing to do with the effort or amount or time people put in, but they want to be honest and that\'s where we stand.
We have not lost our customers.
We are still doing the bidding for the full amount under the contract, which is our situation.
Gary sperstein Okai
So, you mentioned that there are some solutions to the amp problem, and you really increased shipments in April, making them bigger than the whole first quarter.
So, does this mean that this is the case with both the leader of the VIP snake and the order?
Or just $19. 2 million poisonous snakes?
To be clear, we kind of mixed apples with oranges.
However, let\'s refer to the current sales of $19 products.
The 2 million is the same as there are two different types of installed power amplifiers.
Then there\'s a VIP snake.
Esque, which means that it is an integrated solution with the amplifier power retention capability of the handheld radio, when it is signed with the United States for the initial contract, we call it the VIPS. Army.
Now, we are referring to the product line of the automotive adapter amplifier.
So, what we\'re talking about here is the installed power amplifier or two separate amps, the vehicle amplifier adapter in the other amplifiertype system.
Complete all 3 results at the same time and make sure they communicate with each other.
Gary sperstein Okai
So, I just want to make sure I\'m not confused.
Therefore, in fact, you shipped more goods in April than in the first 3 months, that is, all goods are less than $19. 2 million?
Or a variety of contracts?
Mike poprey, that\'s all $19. 2 million.
Gary sperstein Okai
So this is up and running.
Despite the complexity, the customer in April was satisfied with the work of the amplifier, etc?
It\'s definitely Mike pompé.
Gary sperstein Okai
And how much is that $19?
Is there a 2 million shift in Q1?
Mike PopielecWe did not really provide the level of detail.
Just the beginning of it.
Gary sperstein Okai
So, most of it will be in the next 3 quarters?
Gary sperstein Okai
Then you mentioned the timing of the battery order drop, I think you called 9-
Volt is weak in China.
In some cases, weakness and direction 3-
Is that an apple and an orange?
This is only a matter of time on 9-volt and 3-
Volt for different products, different uses?
I think you\'re right.
I mean, it\'s not just the result of tariffs and the like, we \'ve said that in the last few quarters.
We say the contribution is from 9-volt to 3-
Volt, we say there are a lot of people who have their own liquid supply chain.
So, when the tariff is in place, we think they are buying Pure products because they have already released internal inventory and then the number of people who may have purchased is also reduced due to the increase in the tariff.
At this point, we believe that, given the very low number of some customers, tariffs have a considerable impact on demand.
Gary SipersteinOkay, get it.
I don\'t know if you have a chance to read it again, but Harris came out yesterday with their income and attended the conference call.
I think it\'s interesting that they specifically talked about the importance of the tactical radio business to the Department of Defense.
They said revenue grew 55% this quarter and they talked about it.
The budget will increase by $1 billion over the next five years to $7.
3 billion and everything modern and tactical.
They called reporters on HMS manpack.
Then they ended up saying that the Marines were separated from the army.
They got multiple orders.
Then they talked about international countries and modernization.
So, I know you\'re not going to talk about specific customers, but I think part of it, at least leading orders is part of this billions of people
Harris and Thales are the main suppliers and I know we supply the batteries for both of them.
So this is Harris\'s comment on these future products, a little more than any other phone call, how these products have grown significantly and how the budget has grown significantly.
Did you start hearing this, too?
I know it didn\'t pass in the first quarter, but did you get some color from your customers?
Mike PopielecI believes that in terms of the overall spending level, we have been bullish on it for a while and have not specifically talked about either of the two vendors you mentioned, and we are involved in their project, but I think that\'s a good sign.
We are providing auxiliary equipment for radio manufacturers.
Therefore, without a significant demand for the overall radio contract, there is not much demand for our auxiliary equipment.
So we are very optimistic about this and we will do our best to serve our OEM partners for tactical and performance satisfaction and are very optimistic about where this will go, but we will experience chaos from time to time. to-
Time on the supply chain, we saw this in q1.
Gary sperstein Okai
Harris also mentioned in the same review that they are looking forward to the Manpack and 2-
This summer for the Army channel, and then soon after the test will be put into full production.
Is this the schedule that you hear?
So, later this year or 2020 next year, it plans to go into full production?
Mike PopielecI read in our comments on the opinions of others, but if this is true and it turns out to be true, then I think it\'s good for all of us.
Gary sipersteinok is amazing.
So it\'s not changing, and it\'s growing, and that\'s where we\'re going to be in the future.
Go back to the acquisition now, so you said it was paid in cash and used part of the credit line.
Explain to me why a regular loan of $8 million, in other words, my initial understanding of the line of credit, which is $30 million or $35 million, another $15 million or $20 million has a balloon.
Is it still there?
Mine is anything you use, or is the credit line gone and replaced by this term loan?
Phil FainGary, we\'re already at 8-
K was sent out at 7 in the morning. M.
I\'ll review it again this morning.
The revolver is still there.
If you remember, the revolver is $30 million plus $20 million accordion, so, what we do is, we have completed the first amendment to the revolving credit agreement.
The First Amendment not only extended the validity period of the agreement by 2 years, but also provided a fixed-term loan of $8 million as part of $30 million plus $20 million, in addition, there was no penalty for any advance payment.
One point I would like to highlight is that we have been trying to find an ideal acquisition for us.
This does not mean that this is a clear signal, nor does it mean that this is a proposition that has been completed.
After we completed the acquisition, we began to focus on various other projects.
You know exactly what our capital allocation strategy is.
This is a new product, of course, strategic capital expenditure, a share repurchase plan, all about profit growth, including organic mergers and acquisitions and strategic mergers and acquisitions.
Therefore, this reinforces our desire to advance other projects in accordance with the same standards as we do.
Super Good Gary seperstanoko
This is my idea, and it\'s my next question, and I think you guys were originally Accutronics, and what we\'re talking about is, the $20 million acquisition involves almost the same amount of work as the $60 million or $70 million acquisition, and our goal is to find something more transformative and larger.
So, while Southwest electronics is larger than acctronics, it is not content to me with this transformative adjective.
However, I want to know, is it too good to give up? Are you still looking for change, or are you just-you just mentioned that you are back in the hunt again, but it hasn\'t been there yet, it\'s a transformative one, but this one is too good to look up and give up.
Is this close to the facts?
I don\'t know if I look at it this way.
I think this is a very attractive ending.
A very consistent market with what we do.
It happened that the company first appeared on our list four years ago.
So you have some discussion at any time.
As economic conditions improve, oil and gas markets improve, and owners are more interested in talking about it, we have been discussing with them for the past year.
We have been talking to a lot of people over the past few years.
So it\'s not just a specific target for X revenue.
We are certainly willing to continue our efforts to increase the size of our acquisition, but let us enter a very attractive terminal --
The market of our product line, the more we enter this market, the more we pay attention to this company, the more we like it, for us, this is just a huge pit, we are very excited about the smooth integration.
Did all the main owners stay or did they go?
What is the breakdown of key management and ownership of the company, top level employees?
We just shut it down yesterday.
So, we want them to still be there today, but, no, seriously, we want most of the people who manage the team and the workforce to be with us.
Super Good Gary seperstanoko
Can you guys tell me what their compound growth rate has been in the last 5 years?
Phil FainGary, you will see-we have 70 days until July 10, released to 8-
Including all information required for disclosure by the SEC.
Most of your financial questions will be-the financial questions of the investment community will be answered in that document.
Gary sperstein Okai
But obviously you are happy with their history and I think they are positive.
Can you at least comment on this?
Phil Finney yes I think we shared our criteria with the investment community, the strategic interest in the financial parameters, which is certainly one of them.
Gary sperstein Okai
Phil, you mentioned that you bought back 227,000 shares in q1.
Do you have the average price paid?
Can you tell me what is the highest price per share? Phil FainYes.
Gary, you will see it all in our Form 10.
Q, the document was submitted to SEC again at 7: 00. M. this morning.
I would say, now is the time to calculate math and you will see $7.
20, it\'s in 10-Q.
Gary sperstein Okai
What is the highest price you pay, which is the average price, right?
Phil Finis is average.
Very close to the band.
Gary sperstein Okai
Is the repo still open and available? Phil FainYes.
Gary sperstein Okai
Then, Mike, you were 3-in April-
Volt, right? For my clarity, is this specifically for the Internet of Things or for everything, smoke detectors, meters, robots?
Mike popielecthe test passed and there were two different tests. In the U. S.
, We passed the UN test, so we can start shipping samples to a large number of different terminals
Markets including the internet of things.
As far as China is concerned, we have already transported a little bit there.
A large part of this is associated with smoke detectors and other industrial types of applications.
So, at this point, it\'s not just exclusive to the internet of things.
Gary sperstein OkaiGot it.
Have we shipped any 3-
Voltage before this, or just first certification, and then first production order?
We have 3-
Volt products have been around for a while and the structure is a bit different.
It\'s a product that technicians can replace, meaning it\'s not something between after-sales market type apps.
So this is a small change for me, actually what is the current market demand for our products, and to make sure that we perform a little better than our competitors.
Gary sperstein OkaiGot it.
Last question, so, you said in the script that you still expect revenue to grow this year. So, we did $0. 40 non-
Last year\'s durable quarter, GAAP-to-quarter.
As shown in the first quarter, I know it may be everywhere, but the implication is that the average price of the company should be $0.
The next three quarters are better than we did last year.
So, is this a kind of expectation?
I know it may be different in these quarters.
So, suppose the ramp is like this? Do you expect it to be roughly equal by quarter or maybe $0. 10, $0. 15, $0.
20, and then go straight into the fourth quarter, or do you think you\'re going to be stable in the second quarter, so will it be similar Q3s and Q4s?
Phil, of course.
As you know, we don\'t provide quantitative guidance, but I think we will definitely stick to it if you go back and think about it or reread Mike\'s comments.
As Mike said, our goal is to achieve another year of profitable growth in 2019.
How do we go?
This contains a lot of variables.
We hope to have an average related quarter by the end of this year, but life usually doesn\'t.
So we are ready to get there no matter what the configuration is.
Gary SipersteinYes, understand.
However, we should at least do close to $0 with the same other conditions.
To beat last year, there were 40 in the next three quarters.
Okay, Hey, thank you.
I am sorry to take up all your time to answer these questions and I will give others a chance.
They\'re good questions, Gary.
Gary, Phil. thank you.
Operator [operator note] there seems to be no other problem in the queue at this time.
I would now like to move the meeting back to Michael Popielec for any additional or closing remarks.
Mike poppie is great.
Thank you again for attending our first quarter 2019 earnings call.
We look forward to sharing our quarterly progress with you in future quarterly conference calls.
As Phil mentioned, I would also like to point out that we do have Updated investor introductions on the website.
So, please check, and all the other documents and documents submitted today.
I wish you a happy day.
This concludes today\'s meeting.
Thank you for your participation.
You can disconnect now.