Frequency Electronics (FEIM) 12 Dec 192020 Q2 Earnings call transcript

Greetings and welcome to the Frequency Electronics Second Quarter Fiscal Year 2020 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

Any statements made by the Company during this conference call regarding the future constitute forward-looking statements pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. uncertainties the cause forward-looking involve differ results inherently from materially statements. statements that actual could to Such Factors that are would the are the included cause periodic Securities or contribute the Company's press to and Company's Exchange releases filings and report further Commission. in in detailed with such differences obligation changes making date after By no of forward-looking statements these this the statements, update these call. the for undertakes conference Company to revisions or

the pleasure my Bloch, to introduce of for host Martin of now your Executive today, Chairman is Board Electronics. Frequency It

like everybody. to Welcome, Sloane. this the Chief to I’d turn Stan? call Executive Stan over Officer, Dr.

Thank you, Thanks dialing in. Martin. Welcome, everybody. for

the in start Let contracts. quarter the of are previous we $XX business pursuing options We front. backlog, not positive the value of from with This off me of million news currently does yet on robust, fully new or potential with which the contract not be up which continues million ended funded million we value, production period. opportunities exercised. to Number $XXX $XX the are is about yet not include

the in ended course quarter has of another numbers. largest million added our end, immediately backlog The to additional of Company indicator XXXX. of two Quarter three $X.X we in seen which since trends. prior leading the million, received backlog. reflected of $X backlog revenue fiscal to year is with increase contract that pleased backlog an quarter for Subsequent good not a to I’m we tell you also another this call, is yet

positive and have We debt. continue no cash to be

a discussion to details, through Steve quarter, we him. turn Now, but the for will over to the before results let offer me thoughts you the few walk financial

Keep that programs few development engineering state-of-the-art typical in effort quarter is costs to mind creates by the lumpiness issues in be do pushing their was needed programs amount that and where phase. can additional cyclical a development tend unforeseen. margin a issues of and required of technical them. This the appear sometimes engineering Firstly, complex of to the are we at process, the much finishing in solve points that is what up resolve on impacted incurred this certain technical to amount the of

development the transition months, I we to production fluctuation. programs cost on As anticipate these less and complete coming in would

These programs will and growth, transition. bottom-line generate future through once top-line this

and Secondly, under-absorption anticipated to but not slips contract the impacted costs. revenue of just resulting reductions top line awards from as well overhead bottom line, due

best will about what around indicator think my I this opening increasing backlog. turn that is the said in I

our quality, continuing efficiency, focus mention improving on reduction innovation Finally, maintain excellence. cost we and technical operational will and not to

he With call over take that, Steve and Steve? let the turn the financial through will to details. me you

Thank you, Stan. Good afternoon.

compared revenues prior commercial year three million, $XX.X consolidated period six $XX.X and million, and XX% the the revenue million for prior was ended million, period to compared fiscal six-month for same period months for fiscal $XX.X prior revenue and $XX.X the For and fiscal programs of compared October as for XXXX, the consolidated the from was $X.X for same accounted follows. The approximately to Revenue million XX% $X.X government XX, year. of million year. to the of and U.S. are satellite the of components

XX% accounted are for $XX.X million approximately fiscal FEI-Zyfer both the of year and in compared to from recorded customers, are in the FEI-New million are Revenues fiscal on in completion York DOD to York which and U.S. only satellite method XX% FEI-New the year. the revenues, of payload consolidated the non-space and recorded contracts recorded Revenues are primarily under and previous for $X prior segments government percentage segment. compared

million, compared are eliminated fiscal prior year. in Inter-segment the $X.X industrial commercial to was in consolidation. Other revenues revenues $X.X million

gross in challenges GAAP several margin for to margin in the fiscal accounting which engineering accrued is related entire and periods phase encountered programs, X-month technical costs complete The gross and at as $XX.X% a to unanticipated gross to and negative requirements. and anticipated time. XX% development a and customer-driven ended development in contract which to requires XX, time rate that cost rate and X increases XXXX. periods the compared on estimated margin XX.X% by at the that decreased incurred For the same impacted October gross margin on loss that is XX.X% XXXX, was

ended, programs sold. accounting, just goods fall approximately quarter this million development the cost impact into we recognizing In two of of with an to had $X charge

compared October period XX, ended the decreased same X X and XXXX. periods expenses the SG&A XXXX, to For months fiscal in

X consolidated revenues For were of XX, and selling XX% XXXX, October ended expenses for XXXX approximately the administrative months periods. both and

expense percentage X consolidated as X SG&A dollar XXXX, the of XXXX to remains even revenue, the While October ending XX, by $XXX,XXX. as a months decreased October actual months during the ended expenditures compared

technology fiscal fiscal of for for sales, of X rate compared products frequency sales the of at competitiveness. XX% XX% enhance ending the Research time ended R&D the the to same XX% months The period sales edge to and XXXX of XX, for represent X previous Company’s XX% same investment and was year. keep months for The of October the as XX, leading was intended development sales the of and October rate compared future expenditures to of year. the previous XXXX R&D period

and cost The Company the year. prior income. described and That margin the $X.X and the For $XXX,XXX $X.X X compared for million, is gross X October and recorded change XX, million engineering ending largely to operating operating an increased affects fiscal costs $XXX,XXX to previously. of months the attributable loss increasing XXXX,

Company's primarily the income derived Other of from income holdings marketable consists investment securities.

from previous XX, Morion, ending other income included $XXX,XXX in October compared dividend X-month $XXX,XXX the XXXX, For year. period the to dividend fiscal

X and year. income yields of XXXX million to million and loss months This $X.X $XXX,XXX the $XX,XXX for prior the and period of compared October pre-tax a ended X a approximately for $X.X XX, pre-tax approximately

a the same XXXX. XXXX, for benefit fiscal $XX,XXX months of X compared October period ending tax recorded to the of For tax the $XX,XXX, Company XX, provision

For of same per income $XXX,XXX, share, the net $X.XX loss period months for $X.XX fiscal of XX, the million XXXX, ending per or year. previous the compared was or six to October consolidated $X.X diluted share

For or XX, of million loss previous fiscal income the consolidated per three the share, diluted $X.XX $XXX,XXX, $X.X XXXX, compared of was $X.XX to net or diluted the months ending October period per share same for year.

XXXX, $XXX,XXX. six-month the XX, approximately ending For October operations period of cash flow positive Company from the generated

a a was Our approximately of of $X million, The million fully the up funded approximately balance reflect October $XX working at capital the Company's ratio its X.X over The X. previous to and current of is the next meet adequate XXXX for XXXX, operations backlog Company position that to to needs future. from at believes $XX sheet XX XX, and strong million investing foreseeable continues in approximately quarter. October end free months the liquidity debt its

we to forward and questions I return back your the to look call later. Stan,

Steve. you, Thank

commentary has field every ask. in. I'm them you might thorough questions, of have. you our interested be to feel if whatever can sure any free be answered And Operator? question one address to But you nonetheless, additional you us possible to happy might we'll please have or

to Janney. first go We'll Instructions] at Reiss Brett [Operator

said was on it calls? bids bids time on past And Stan. rolled -- historically on to it's gentlemen. forward, rate outstanding suggested you to Hi, for months you’ve your on be outstanding for going than do think make going XX%. is calls guess, you've is also decisions XX Stan, XX% my a the going to longer little Do the that the I decision-maker to to question XX success past bit? would that's be be you think back

So, two questions.

of world, going First the one, very predict to hard to decisions on a timing. little commercial when -- made. course, There's hard be in are

I would win don't think question than the say have second of anything anything's On government course previously. told the would continuing don't I -- different apply of this I we in terms of part and your we other rates. you side, also That resolution things. quarter

with eight seen all the you robust four embedded with reason some little was from pond. for all you million look embedded and that in is a have April, fishhooks which you that these months $XXX bids of question, of end outstanding. that -- and in report, of from The And XXXX I million in at $XXX December, the looked more your We're $XXX it's ago. million the just months the annual rewards had disappointing haven't year we $XXX million, in was that when

to things options. competitive awards. up those that bids. together. thinking you’re our options on exercise I you think, bids, I including new straight what contracts said is new on exercise were two couple a slippage production slippages think referring I than -- we of the in are necessarily don't on numbers the mentioned But, existing different that's dynamic that on Your And to timing about And of not opportunities. those, go

to are where side, initial have have done, option exercise have once tied the the cycle units. on the then qualify On that's those a and engineer -- things to to design options. they to more program And we development the ability and produce we

think that that's I your on. think -- include So, options numbers the had I things

mixing I'm for apples questions. Thanks pears. and if apologize my I Okay. answering

Sure.

individual Next, we’ll investor. go to Richard Jones,

is but have of $X loss. written the expenses. How really have to the those the Steve off about kind do question you will I long more might explained My Hi. elevated was the it’s you Yes. be engineering And, florid know of the kind size difficult, by I that continue? million? any expect that do of way

that's question. So, my

think referred to the development do obviously development. doesn't make complete and made be future to over technical terms few while anticipate try that, that very programs, Steve So, mostly improvements we've and I of months. cycle the bid that But, the don't in And programs process sure will next happen. that several we our in we

end Sometimes what harder up thought. being just those you than things

do quarters, a be losses again? profitable it'll How quarter Company I reports last you think. the recorded in long You've think before the four

guidance are two those the Well, finished as we get but And programs we I you, up, development told working up to in months. which next financials. give the of current these finish don't hard are course, driving

All right. you. Thank

Sure.

We’ll go next to SER at Sam Management. Asset Rebotsky

million, Of Yes. engineering -- you for happened were first and and in go how And The kept, and ahead. decided, $X before -- was the what account were deferred expense the yes, costs how they it the Steve. off quarter the much much second in quarter? to in question is charge where the decided is what

What QX happened costs. -- it’s all

you when that I was million going you if of So, to a is look $X.X you what that contract about be number. a accrue have realize to is it said loss, --

lost then… $X.X So, And contract we two for accrued those programs. about million of

of rest $X the And million?

the quarter. cost this actual spent the jobs -- in Is the cost

have Okay. in And a rest any And Do in of months. next we Stan the said, gains this revenue revenue? additional the in just of the year? will couple million this losses without so or couple complete -- of or

are there's the said, about programs problem. Well, that that do technical to another we But, like it to I never guarantee I problems? problem No, Sam. quarter talked ones a I guidance, don't the nothing Can I will foresee now But, has don't -- that right this up. I appears can't there contributed that be sitting the finishing have that. program give

treatment, what accounting costs you’re No. to accrue a on had But, money. going you're any based what I'm supposed not to Steve that saying, said, contract all make on

even revenue So, some more some expenses, break balance. on the normally, get more and you'll and you'll

go me revenue. the Let to

that's million backlog about to $XX million $XX million. The million $X million $X.X a contracts the additional, after referred $X.X you talked and we this, above define million Could that million. You potential Stan? after and $X the

up So, of backlog the to as million would $XX.X that now? get

million. million top numbers, there's yet. press to not way The you're -- No, release today, includes about of that's talking call contract the we in million. $X is $X.X And $XX afternoon. the two the by just the today, million the X that this got the does On out another $X prior includes that for XX include -- that the

million, see backlog it's million $X.X backlog, $X.X not million. might plus $X of $X.X million be it's So, million and million, $X which I additional million approximately $X $XX so

The we million $X the me of That is -- today, $X.X reflected added the million numbers. in backlog. Let for end had Subsequent of quarter, is in QX not to contract. million the end awarded another At It’s the backlog. timing we $XX backlog. decision here. of important not that we the quarter the in also

these And $X and million Okay. is funded? $X.X fully

No.

They're not fully funded? Okay.

for things release, and press Is yet it million, contract, Now, not expect to it of revenue, be is options a is which there $XXX out exercised. when about $XX which value funded, production which fully funded. -- is $XX but expect we number the these additional do or or number funded? what not million, yet it million, $XX Could language fully what we is of kind the that's it in bidding get include million, we quantify of in not dollars kind is not funded? not does of fully We're the

the In sure what is our you Just backlog right on get -- funded. only to make is baseline.

where that that. So, is contract and we have in -- the funding but reflected we have some backlog, contracts that funding higher the value is than

that So, high. the The yet It's likelihood not be those is very funding will yet authorized. funded received. is not

addition contracts have In that that, to we options. have

One For secondly, exercised, options. go and don't be to Those has to happen. Two option example, is things production be of into course, it backlog. the funded. has

So, if they they you exercise an for of only have for it, something $XX production example, you only into $X backlog. for -- fund $X option and but then the goes if option, for

Okay?

backlog, up goes honest into down what's you, and that actually the number it I difference of out with fluctuates. stuff revenue contract, terms between to because In have funded, a then goes precise of that in be and comes don't and not what's

don't it daily. probably So, number, change a would I you because give want to

looking backlog another is I'm $XX -- get could have which and plus In funded, or words, we of course, -- expect we… XX? just is XX needs do range. have other X, That we be funded, X Right. a we or funded for if we to potentially have that and getting million

number. I'm you going not a to give

okay. Okay,

But if calculation, I probably number’s higher. do were I to your sit and down the think

XX the from it it's there's the $XXX million the the contracts, ramifications? is it that Okay. with same just that would trying appear for I'm are million is quarter. some is just And how to same, And And of bidding we -- the -- or $XX many changed? the or bids, is people last nothing sizes significantly it million, $XX that we are players, finding bids, kind basically contract

bids But options. ones dollars. First we're larger mix. of the of millions the big typically hundreds $X,XXX of number from, a include I a range it's one to pursuing think and range for we spreadsheet. of us, other our a all, had of It's that pretty Total course, bids day

So, want on changed give differences. I delays I Not quarter this. has significant a the some bids There a larger some, making been you to mentioned in decisions, has significant numbers. as lot earlier, don’t but just number, but last people whole between and it's no

All in right. make on you've your have luck, that their for been you'll taken Frequency to contract Hopefully, and there profit. bid you -- a better enough a Good guys. medicine you've that

Sam. you, Thank

[Ph] Private to move We'll Investor, Michael Eisner, next.

is question This Stan. to

Mike. Hi,

November You How with -- that XXth, October are you plus any base Are had $X.X backlog the had mentioned? and you million on a in you million million contract is systems, you? $X the contract XXth. the $X government that counting in on

think all is there… Steve, of so. it I Yes, in

include XXst. The October reported, $XX because that No. those that million I does not were after backlog the

mentioned? understand I that. that No, that $X is you net But, million

Yes.

yes. answer Any additional, The be Yes. would yes.

It will show up -- next in current quarter? the this

This current quarter.

$X.X that of possible And or…? you counting million as or backlog part

funded. not that's No,

that backlog. until include included not backlog won’t funded. have We in that it’s We in

million? not $X $X.X the The is but funded million

correct. Yes,

Yes.

confused was that. everyone by think, I

Most The clocks But, development is confusing. more here. of becoming the it understand of -- I atomic accounting that. know, complex than we it is

In right. revenue? when we you release, are transition press to top see where All revenue production to the line on going

few in -- of development. Well, months. referred that on the in lot the I have about, finish are specific those specific up And that's next production, that development not talking to, programs months. program in what ongoing a few those those cycles was next programs in programs we I But,

What hurt right the you, some past stuff just to this moved quarter?

talking we accounting of of of percent a secondly, that effect complete program effect. these converted revenue slippage problems and awards a would course, of sort of had that anticipated has Steve performance; assumed; of accounting the referred to then the sort current The to the double convergence Yes, in we're about, that problems. have that couple

GPS All right. How's the IIIF along? coming

the is The well, Excellently. and with program results. development -- I'm going very the program very pleased

Of and is long. of in initial ahead but of a unit saw units lot we assembly going lot course, test too and of had we the into a qualification be before us, -- are will testing,

didn't I the to add any on that. assume you backlog more

have that. on several that But, million Not that that to one. number we $XXX relate in opportunities

think that, at outstanding whatever I not -- bids. the Yes. in meeting, in backlog annual that was fund think backlog, the $XXX like Because or -- on I call there million you

yes. Bids, Oh!

Specifically related number. it's significant to GPS, pretty a

year a received for and you ago, How Elcom a that warfare. advanced half is About coming contract along? Yes. an electronic

I think, you're referring to the program. AOEW

Yes.

From a units view, technical and Initial have customer’s of point that's pretty progressing been well. delivered evaluating.

and And $X to million, that lead the right. All contracts? $X.X bigger million they’re recent contracts, small two does

here, hope they to would talked the program has -- satellites there, contract lead $X.X the million I The one that initial there's about that's million more to The Yes, approves would to I if we follow. a add larger satellites. those that million, program, whole obviously, Yes, other government mean, up that program, the a for today, things. numbers.

nice So that for one has us. potential some

you hire do And any salespeople?

on Since -- in additional marketing and and added have also. New resources we sales sales depends what here York that people, time in Elcom, but particularly frame,

months the six In many people? last sales how

one, augmenting it's and relatively support. remember that but we're outside consulting Elcom, folks that's business. are sales that with with marketing associated employee But, At smaller the

So, directly people? you didn't you some hire them have indirectly or

have certain in. for Well presence don’t we're consultants bringing both, We where example customers. indirectly, in key places we have

Given people. have XXX the afford Company, sales can't size the we to of

and some have we -- reps have do representation in we sales and that sales parties. do through third we certain So, we typically markets

commission, just So, they're that not I consultants W-X assume. get paid employees, on they're

commissioned, on what them them doing. Some are of depends some it of they're are hourly,

took the All money. right, roughly, top salary, losing $X.X a three and year I'll comment, last people, we’re make in just million

forward. move We have to

We have making to money. start

money made a haven’t We year… in any

agree. we Yes,

I here I’m Past results XX million to lost lot, it's a in just quarter. years and just some Company, this see year, $X want this finally. we

both. You and me,

you. Thank right. All

Thank you.

investor, to [Ph] private next Cooper. go Michael We'll

afternoon, Good guys.

Okay.

it little some expand to and think what sense develop. development? on clarity And will resources where it the clock? a is to that taking comments is. here It give some new on is. more projects to the existing to I'm markets. have for of clock not software a going couple customers? keys development developed I what you bit are I talk So, made of but is you no opportunities? up that this have what is encrypted atomic something or about Is markets this I market is what your us rubidium Can you get Is intriguing, idea atomic sure just digital being your rubidium sell Company want open digital a a sounds What

So, talk could maybe that bit little you a about and…

Okay.

of satellites applicable referring to other So, atomic here referring going you're using The requirements frequency on is relevance are same clock well. view. digital adds frequency however. for rubidium the for rubidium It's from requirement. clock provides clock, program, as what's and the for that's referring developed clock, either pretty very that's high very a what we're and clock of that clock that point GPS earlier that is it progress is known time, physics keeps where -- time atomic dependent frequency particular program, satellite good think the The standard a -- The communication other such of of time precise as is is a this the atomic performance a that's reference that's that’s to a DRAFS our and and clock. what program clock development, a variety software precise hardware very satellites Don't to clocks on very GPS and I rubidium was This control IIIF are time, precision well an that for previous is specifically the of circuitry. to, things the and digital you're use technology it also science provides. and being on DRAFS or and systems. a system That satellites evolution

question? So, it's the your for not only GPS program. III applicable that Did answer

Yes.

the area, still atomic so lot it XG, was I'm the of now, systems these having a to that about airline their -- possibly type the I’m think a would seeing away timing just thing. I'm technology that that clocks And something is what Frequency be because solution requires I'm out that and bandwidth Electronics. -- XG is for, can't can it's in talking So, I I and And networks sure know airlines right clocks industry. where they so, would clocks, ago is like systems some that reports in week But, the of relevant CNBC or and I'm evolution that used space. or go. in doing airlines very all -- not suggesting And satellites. atomic And those I their a getting closer you then, on suggesting important atomic to that. atomic in focused towers other the reading about offer wondering ability clock give cell synchronization for recall of moving is on I'm are so, free [indiscernible] in is talking Martin a somebody Electronics I Wi-Fi. the But, or what the seeing for installed away. opportunity the reading There XG Wi-Fi the of lot guess, important crash Frequency that XG, it on about

all, the space is technology applicable qualified of qualified a other let clock -- be me of to will started is clock. things. of variety we the also first conversation clock But, that a that, the when space say DRAFS clock So,

the types commercial The focused we here of are delivered if space high-performance. fact, clocks numbers producing level different probably for side that on There performance little But, tend we’ve be and for we in types look things XX you not it applicable level that side. clocks We're be like clocks and are years, at ground more the of on do a the cellular is if of company the as not performance. that don't XG of The requirements up last the requirements history different In that commercial would very device. the add only space. to and than just of other of things. of of here think clock sort for that

here high performance, of market value-added principal types clocks. high Our is

final one question. Okay. just And

in So, platforms the I guess platforms military, tanks, planes, numbers a for XX,XXX have there you? Is military. I seen a in submarines, ships, that I'm I’ve target -- the market out around and talking the seen

has We say lot or for oscillators that shouldn't That that Depends environment. Anything the And I has airplanes, on machinery affects or the immune, very that moves a applications. the We sort are unique that. platform. in to high-performance do of vibration. things mostly They a drives, platforms, vibration. flies performance vibration of the a immune of like is particular oscillators. of sort airborne our it do or oscillators typically a go high-value into UAVs.

So, that of to would think it. applicable be the platforms. lot to about way It's a

lot to Now, associated and a that jamming platforms, secure things have requirements. installed the and communication problems to on necessarily to, with of spoofing they're clocks do we not oscillators necessarily don't for, very example, the for moving -- used in for move, on that but precision for they GPS mitigate example, systems still program. addition also performance high They're

mix. a it's So,

don't say platforms we moving just what would as don't think we when of platforms. So, lot describe of platform, move, platforms, a

And gross substantially least after and quarter margin at and Thanks. next grows, Okay, the that. grows then then hope grows great. month next I somewhat

that We're happen. working hard to make

go Center We'll at Performance Smith Instructions] [ph] for next [Operator Investments. Robert to the

the Like landscape numbers. little more the of to get about a color

bidding on, you're million $XXX this inclusive? the that something you me tell all about is can this, So,

of outstanding. number Yes. number a with That's total the sort the of rough associated

win and somewhere your is XX%? number between XX% said you And

Typically, yes.

Difficulty] as period years? what of far of the number [Technical Over as time

move programs It's know. don't around. We Yes.

somebody we sometimes not That's wouldn't that as -- get programs buy not loss. anything. just They they the Sometimes canceled. cancel decided that's program, a loss, a treat to

five [Indiscernible] run years… to from one year

our about performance, asking typical… program you're the If

translates so backlog. an speak, into annual get I'm rational to trying average current to number number, your that to

mean, pursue mix revenue, is number million to $XXX of around I have for of execute say if Well, time. that x grow some that dollars over in you of period to -- business that you is -- worth revenue and a x if you has And stuff. number, sake, new million, to our then argument's $XX order

that Some production get of of six a months. you opportunities in is to it it couple of contracts years, execute over for eight some that is things delivered

So, it's a mix.

be mix, as understand goes? what that as an would of far I a time point but mix, it's average

I'm question. that not sure asking Are I will million understand when adjudicated? be you $XXX the

of then you If If and that’d it’s you million. have the opportunity years, to point a your -- be different would XX% you years It least two $XXX an be that's then be $XX average $XXX at five won revenue? story, million, will half double million. would

Yes. Well, say for million, the arithmetic remember two let's may programs of three years. might four years, these off. satellite, it, over worth or be is some sake, program not example may of but initial in for satellite But be options high-value the over that has a that that far $XX the argument’s part run options that

next few to needle to do potential your is with the what which try years time? to for suggest Well, see you move that as long has been a revenue to kind me and a rational number over long, your as static come number, up some far kind what of of

adjust win be share growing other we the reasonable of business. we if and to then beyond should Well, that are things for were control, cancellations programs and our the those

off. not Your is arithmetic far

Does any budget passage the the have to meaning of the defense moment? you in

There the I related are prior Some their of couple launched to are think example, funding most the underway programs, CR. get right which by things to the defense CR, is the by the not most that we programs. slippages They're but now a of affected things have with decisions but able budget do to raise to like the constellations about, for people of that. and being commercial larger have are affected of nothing

clock in area anything or Can alternative? the about atomic the Okay. competition tell you me

What you? us would you like to tell

tell. Whatever you can

world the the level China at depends It country. And we in make Nobody that do. clocks. precision not the that makes on people clocks. we're the -- the only the clocks Well, build they has of atomic

is certain targeted which market. Great, to a

leg around have value any up on might for atomic be a So, competitive essentially, force that you high clocks.

is We readability. but performance very important, space the in example Spacecraft. in clocks, on not best in side of the And the the clock and the both give space only terrestrial side advantages the the Track think space defense we I'll in is to performance terms Voyager particularly that's customers. offer record the

for the I or is. think in saw space what net out XX Martin launched. has something years. been XXXX XX was actually clock, it it electronics I that XX forgot or

we talk probably as are equally important So, reputation cost as about trust, in those business. when this and

might around Is atomic the anything there replace that clock?

-- clock. is would various at No. atomic not atomic Atomic least there have clocks of that clocks being that developed are types -- but replace

much. very Thanks

Sure.

investor. go next private will Jones, to We Richard

Hi.

that on air What's annual think on hold the million, mentioned there the that $XX in middle in force program? $XX status million you'd about in and important You that an of more the was last and that neighborhood of contract, was call meeting at also December. I learn the the the of

change. But The at don't is active. funding. we we contract moment, have -- No the still

You're referring developing were was lab. program, is what POP RAFS called for to we air force pumped research which clocks, the optically rubidium

on When do you a that? resolution you might think get

If know. were wouldn't that be I don't I I here. smart, working

mean, military look section space. for space news Okay. a pretty I to about And sounds like the relating in exciting new Pentagon pretty recent How the encouraging and do create you thing budget That military at that included it? going was to news thing. your the company. warfare a

Yes.

good. that's think I

of programs are cycle good it's important budget sort the the in to I sorts and for that the satellites. I more think we're immune. procurement How business procurement trends for under out the either that politically, is overall. But, space or think, us key what's

Ladies have or no the back questions and holding. any comments. turn for closing conference other additional I'll gentlemen, I

like Great. any to very much. Thank you would make closing you Martin, comments?

my healthy holiday. is voice everybody very and are a you. to all to and achieve little. to wish I want a working that very at great people holiday Thank And back hard appreciation FEI progress. the My a thanks season. Have happy

conference. Ladies thank your today's We conclude that and gentlemen, for will you participation.

disconnect have great time may at day. You this and a